Sept US retail sales up as goods spending preferred over services: NRF

“Despite persistent challenges related to the global pandemic, supply chain and labor shortages, retailers and their partners have shown resilience and ingenuity in getting the workforce, goods and systems in place to serve their customers and the communities where they operate….We have seen record imports this year and are confident that collectively we can work through these challenges to ensure a healthy and happy holiday season,” NRF president and chief executive officer Matthew Shay said in a statement.

“The reopening of the economy was interrupted by COVID-19 and consumer spending other than retail hit a speed bump toward the end of summer,” NRF chief economist Jack Kleinhenz said.

“Consumers remained active, but retail sales didn’t reflect as much of a shift away from goods to services as expected. That was a plus for retail because consumers still have a hyper-ability to spend thanks to wage and job gains and the household savings built up during the pandemic. In addition, some back-to-school spending may have spilled over from August into September because of school districts that delayed opening until after Labour Day,” he said.

“Overall, the September report is very promising for a strong finish for the year. Nonetheless, rising inflation and slower supply chains remain a concern. Spending might have been higher if not for shortages of items consumers are eager to purchase,” Kleinhenz added.

The US Census Bureau recently said overall retail sales in September were up 0.7 per cent seasonally adjusted from August and up 13.9 per cent year over year. That compares with increases of 0.9 per cent month over month and 15.4 per cent year over year in August.

Despite occasional month-over-month declines, sales have grown year over year every month since June 2020, according to census data.

NRF’s calculation of retail sales—which excludes automobile dealers, gasoline stations and restaurants to focus on core retail—also showed September was up by 0.7 per cent seasonally adjusted from August and that September was up 11 per cent unadjusted year over year.

That compared with increases of 2.4 percent month-over-month and 12.2 percent year-over-year increase in August. NRF’s numbers were up 10.7 percent unadjusted year-over-year on a three-month moving average.

For the first nine months of the year, sales as calculated by NRF were up 14.5 percent over the same period in 2020. That is consistent with NRF’s revised forecast that 2021 retail sales should grow between 10.5 and 13.5 percent over 2020 to between $4.44 trillion and $4.56 trillion.

September sales of clothing and clothing accessory stores were up by 1.1 per cent month over month seasonally adjusted and up by 22.5 per cent unadjusted year over year.

Furniture and home furnishings stores were up by 0.2 per cent month over month seasonally adjusted and up 13.7 per cent unadjusted year over year. Sporting goods stores were up 3.7 per cent month over month seasonally adjusted and up by 13 per cent unadjusted year over year.

Fibre2Fashion News Desk (DS)