Retail sales grew for some, not all, retailers

The National Retail Federation reported that retail sales continued to rise in June even as employment grew more slowly. According to the U.S. Census Bureau, overall retail sales in June were up 0.2% from May and up 1.5% year over year. In May, sales were up 0.5% month over month and up 2% year over year.

Not all retailers, however, felt the rise. Building material retailers and garden supply stores were down 1.2% month over month seasonally adjusted and down 3.7% unadjusted year over year. Sporting goods stores, likewise, were down 1% month over month seasonally adjusted and down 0.9% unadjusted year over year.

On the positive side, online and other non-store sales were up 1.9% month over month seasonally adjusted and up 9.9% unadjusted year over year. Furniture and home furnishings stores were up 1.4% month over month seasonally adjusted but down 3.6% unadjusted year over year. Electronics and appliance stores were up 1.1% month over month seasonally adjusted and up 1.8% unadjusted year over year. 

“The pace of spending is slower, but consumers are still in control of the direction of the economy thanks to the still-growing labor market and a comfortable cushion of savings,” NRF Chief Economist Jack Kleinhenz said. “Jobs aren’t growing as fast as they were, but employment is by no means in a slump, and if consumers have jobs, they have the willingness to spend. On average, consumer balance sheets remain sturdy and they have the wherewithal to support spending for most of the rest of the year. That’s thanks, in part, to excess savings built up during the pandemic along with easing inflation.”

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed June was up 0.4% from May and up 3.3% unadjusted year over year. In May, sales were also up 0.4% month over month and were up 4.4% year over year. NRF’s numbers were up 3.1% unadjusted year over year on a three-month moving average as of May and up 4% for the first six months of the year.