Core retail sales, as calculated by the National Retail Federation, rose in July as consumers kept shopping, NRF reported.
NRF’s calculation of retail sales is based on U.S. Census Bureau figures, but it excludes automobile dealers, gasoline stations and restaurants to focus on core retail.
The U.S. Census Bureau today said overall retail sales in July were unchanged from June but up 10.3% seasonally adjusted from July 2021. On a three-month moving average, sales gained 9.2% year over year.
NRF’s calculation of core retail sales had July up 0.8% from June and up 7.1% unadjusted year over year. In June, sales were up 0.6% month over month and 6% from the year previous. Core sales advanced 7% unadjusted year over year on a three-month moving average as of July. Sales were up 6% year over year for the first seven months of 2022, keeping results on track with the organization’s forecast for 6% to 8% sales growth this year.
By retail channel, as defined by the Census Bureau:
- General merchandise stores slipped 0.7% month over month seasonally adjusted and 0.1% unadjusted year over year.
- Furniture and home furnishings stores gained 0.2% month over month seasonally adjusted but slipped 0.3% unadjusted year over year.
- Health and personal care stores gained 0.4% month over month seasonally adjusted and 1.5% unadjusted year over year.
- Electronics and appliance stores gained 0.4% month over month seasonally adjusted but slipped 11.3% unadjusted year over year.
- Building materials and garden supply stores were 1.5% month over month seasonally adjusted and 6.2% unadjusted year over year.
- Grocery and beverage stores gained 0.2% month over month seasonally adjusted and 7.7% unadjusted year over year.
- Sporting goods stores gained 0.1% month over month seasonally adjusted and 3% unadjusted year over year.
- Online and other non-store sales gained 2.7% month over month seasonally adjusted and 18.1% unadjusted year over year.
“Retail sales grew in July, supported by declines in prices at the gas pump and moderately lower inflation,” NRF President and CEO Matthew Shay said in announcing the sales trends. “Consumers are adapting to higher prices by prioritizing essentials like food and back-to-school items, and retailers are working hard to absorb the impact of higher costs and help customers stretch their hard-earned dollars. However, policy measures like removing China tariffs, enacting smart immigration reform and investing in supply chain resiliency are needed to relieve inflationary pressure and lower costs for American families.”
NRF chief economist Jack Kleinhenz said. “Retail sales were up considerably compared with a year ago even though consumers are more discerning in this economic environment. Consumer spending was an encouraging signal as the economy kicked off the third quarter. Nonetheless, inflation is still disturbingly high even as it eases and is the most important challenge for consumers and retailers. The future path of inflation remains a key factor for the economy and monetary policy as the Federal Reserve works to bring price increases under control.”
