Retail sales reversed their downward trend in July as Amazon Prime Day and major promotions by other brands prompted more shopping while wage increases gave consumers more money to spend, according to the National Retail Federation.
The United States Census Bureau has released figures demonstrating that overall retail sales in July were up 0.7% from June and 3.2% year over year, double the increases seen in June, when sales gained 0.3% month over month and 1.6% year over year.
NRF’s calculation of retail sales, with automobile dealers, gasoline stations and restaurants excluded to focus on core retail, had July was up 1% seasonally adjusted from June and up 3.8% unadjusted year over year. In June, core sales advanced 0.3% month over month and 3.2% year over year.
The NRF numbers were up 3.9% unadjusted year over year on a three-month moving average as of July and 4% for the first seven months of 2022.
By retail channel, NRF noted:
- General merchandise stores were up 0.8% month over month seasonally adjusted and 1.6% unadjusted year over year.
- Electronics and appliance stores were down 1.3% month over month seasonally adjusted and 3.5% unadjusted year over year.
- Furniture and home furnishings stores were down 1.8% month over month seasonally adjusted and 7.6% unadjusted year over year.
- Building materials and garden supply stores were up 0.7% month over month seasonally adjusted but down 3.5% unadjusted year over year.
- Health and personal care stores were up 0.7% month over month seasonally adjusted and 8.3% unadjusted year over year.
- Grocery and beverage stores were up 0.8% month over month seasonally adjusted and 1.5% unadjusted year over year.
- Sporting goods stores were up 1.5% month over month seasonally adjusted but down 0.5% unadjusted year over year.
- Clothing and clothing accessory stores were up 1% month over month seasonally adjusted and 0.9% unadjusted year over year.
- Online and other non-store sales were up 1.9% month over month seasonally adjusted and 11.8% unadjusted year over year.
“July retail sales show consumers continue to drive the economy through this period of economic pressure with robust spending supported by steady job growth and wage gains,” NRF President and CEO Matthew Shay said, in announcing the July results. “Retailers remain focused on providing essential items at competitive prices for families and students as we approach the end of an expected record back-to-class shopping season.”
NRF Chief Economist Jack Kleinhenz added, “Retail sales growth has been slowing, but July got a midsummer boost from special deal days offered by multiple retailers. Households had a positive response, and the pace of sales was clearly helped, more than doubling the previous monthly gain. The data shows the ongoing resilience in consumer spending and how it is fueling the overall economy. It’s worth noting that the strong year-over-year gain came partly because sales accelerated this July but were decelerating at the same time last year.”
