Walter Bibikow
Retail sales showed moderate growth in June, amid a still-solid economy and near-zero inflation for retail goods, according to the National Retail Federation. Total retail sales, excluding automobiles and gasoline, were up 0.47% seasonally adjusted month over month in June and up 3.42% unadjusted year over year in June, according to the CNBC/NRF Retail Monitor. That compared with increases of 1.35% month over month and 3.03% year over year in May.
“Consumers are being thoughtful about their spending, prioritizing non-discretionary purchases as they continue to face high-interest rates and lingering inflation,” stated NRF CEO Matthew Shay. “Inflation has dropped to nearly zero for goods, but remains persistent with services, and solid economic fundamentals are helping consumers make ends meet,” he added. The year-over-year gains for total retail sales were highlighted as the largest seen since last fall.
Categories that were strong during June included clothing & accessories (+5.35% Y/Y) and general merchandise (+5.79% Y/Y). Those growth rates look favorable for a wide range of retailers such as Target (TGT), Ross Stores (ROST), Gap (GPS), Abercrombie & Fitch (ANF), Boot Barn (BOOT), Urban Outfitters (URBN), and Guess? (GES). Notably, grocery and beverage stores were up 1.01% month over month seasonally adjusted and up 4.31% year over year unadjusted.