NRF: August Retail Sales Reflect Caution

September 16, 2010  by in UnCategorized   

By Home Furnishings Business in economic news on September 17, 2010

August retail industry sales--excluding cars, gas and restaurants--rose 0.5 percent seasonally adjusted over July and increased 3 percent unadjusted over last year.

According to the National Retail Federation, which removes the above categories from U.S. Department of Commerce retail figures, the results reflect continued consumer caution.

"Most Americans are in a much better financial position than a year ago, but they are still spending cautiously, looking for bargains and comparing prices before buying," said NRF President and CEO Matthew Shay. "After leveraging aggressive promotions to bring in back-to-school shoppers, retailers are putting the finishing touches on promotions and pricing for the upcoming holiday season."

August retail sales from the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.4 percent seasonally adjusted over July and increased 3.5 percent unadjusted year-over-year.  

"While the underlying trends remain positive, shoppers are still focused on getting their finances in order," said NRF Chief Economist Jack Kleinhenz. "The challenge for retailers is to convince consumers that the recession is over and to buy accordingly."

Led by traditional back-to-school categories, retail sales across the board showed strength. Clothing and clothing accessory stores sales increased a solid 1.6 percent seasonally adjusted and a 3 percent unadjusted over last year. Sales at health and personal care stores sales increased 0.6 percent seasonally adjusted over July and 2.2 percent unadjusted over last August.  

Sporting goods, hobby, book and music stores sales increased 0.9 percent seasonally adjusted over July and 4.2 percent unadjusted year-over-year. Building material and garden equipment stores sales were flat from last month and increased a strong 6.6 percent unadjusted from last August.