July retail sales bounce back strong after weaker showing in prior month
Early back-to-school promotions pay off for retailers
-- Casual Living, 8/14/2006 6:23:00 AM
Early back-to-school promotions and summer heat waves paid off in big dividends for the nation's retailers in July. According to the National Retail Federation, retail industry sales for July (which exclude automobiles, gas stations and restaurants) rose 6.2% unadjusted over last year and increased 0.6% seasonally adjusted from June.
"The intense summer heat combined with back-to-school promotions brought shoppers back into the stores," NRF Chief Economist Rosalind Wells said. "This shows that it is impossible to count the consumer out just because of high prices at the pump."
July retail sales released by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) rose a stronger-than-expected 1.4% seasonally adjusted from June and increased 3.9% unadjusted year-over-year.
While sales were strong across most retail categories, stores promoting back-to-school merchandise outperformed expectations. Apparel, the most important driver for back-to-school saw strong gains. Sales in clothing and clothing accessories stores jumped 0.7% from the previous month and 6.4% unadjusted year-over-year. Health and personal care stores were up 0.6% from the June and rose 8.4% unadjusted over last year.
As the back-to-school definition of electronics expanded to include MP3 players and cell phones, electronics and appliance stores saw the benefits. Sales in this category increased 1.9% from the previous month and 7.6% unadjusted from the same period a year ago.
Other categories also reported strong gains in July. Building materials and garden equipment and supplies dealers rose 1.8% from the previous month and soared 10.8% unadjusted over last year. Furniture and home furnishings sales also continued to rise, increasing 0.5% from June and rising 8.8% unadjusted over last July.
The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.4 million U.S. retail establishments, more than 23 million employees -- about one in five American workers -- and 2005 sales of $4.4 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. For more information, visit www.nrf.com.
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