Author: Helen Thomas

U.S. retail sales declined during the month of June, the Census Bureau reported Tuesday.

U.S. retail and food services sales for the month, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $401.5 billion, a decrease of 0.5% from the previous month but 3.8% above the year-ago period. Retail trade sales were down 0.5% from last month but 3.5% above last year.

Looking across retail categories, adjusted sales at grocery stores during the month of April increased about 0.1% to roughly $47.06 billion. Health and personal care stores saw a slight decline to nearly $22.8 billion. Retail sales for drug stores and pharmacies were not recorded; however, sales experienced a slight drop from April to May (about $19.14 billion). General merchandise stores’ sales decreased 0.2% seasonally-adjusted month-to-month and remained flat unadjusted year-over-year.

Commenting on the results, the National Retail Federation said there is “no doubt about it that consumers cooled off on discretionary spending this spring.”

“While the retail industry remains confident in an incremental recovery, today’s statistics should concern every policy-maker in Washington, and compel them to revisit burdensome regulations and job-killing tax increases set to take effect early next year,” NRF president and CEO Matthew Shay said.

Added NRF chief economist Jack Kleinhenz, “Weak economic numbers over the past few weeks have increased anxiety about the future direction of the economy. Today’s data is discouraging but not demoralizing. If you look at the first half of the year overall, retail sales actually increased 4.6% year-over-year, indicating that the economy is improving, but maybe not quick enough to impact consumer spending and job growth.”

Source: retailingtoday.com

The U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for June, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $401.5 billion, a decrease of 0.5 percent (±0.5%) from the previous month, but 3.8 percent (±0.7%) above June 2011. Total sales for the April through June 2012 period were up 4.7 percent (±0.5%) from the same period a year ago. The April to May 2012 percent change was unrevised from -0.2 percent (±0.2%).

Retail trade sales were down 0.5 percent (±0.5%) from May 2012, but 3.5 percent (±0.7%) above last year. Nonstore retailers sales were up 10.9 percent (±3.1%) from June 2011 and furniture and home furnishings stores were up 7.8 percent (±2.8%) from last year.

Source: census.gov

Analysts expected 18 top retail chains to report modest gains in June, as high unemployment and falling consumer confidence have taken a toll on spending.

Among the department store retailers reporting June same-store results so far, the results were largely mixed. Macy’s was among the retailers reporting sales that fell short of estimates. Same-store sales rose 1.2% in June, missing Wall Street’s projected 1.9% gain.

“June sales were below expectations,” said Terry Lundgren, chairman, president and CEO. “In part, this was a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York. Additionally, the unprecedented renovation at Macy’s Herald Square in New York City, the world’s largest store, is well under way but created more short-term business disruption than anticipated in the June sales period.”

Macy’s and Bloomingdale’s generated total revenue in June of $2.41 billion, representing a slight 0.8% gain.

Kohl’s Corp. was also challenged in June, reporting a same-store sales decline of 4.2%, after Wall Street had forecasted just a 3.2% drop. Total sales for the month decreased 2.6%.

“Though June sales were again lower than expectations, we are encouraged by improved sales in the latter weeks of the month as we continued to build inventory levels,” said Kevin Mansell, president and CEO.

Among other department store retailers reporting so far, Nordstrom same-store sales rose 8.1% in June, solidly beating Wall Street’s expected 4.7% gain, Saks rose 6%, surpassing the forecasted 4.7% rise and Bon-Ton Stores same-store sales dipped .8% in June.

Source: retailingtoday.com

While consumer confidence may be slightly down, retailers that cater to lower-income and higher-income consumers should be pleased with the most recent Consumer Reports Index, as those two groups showed the greatest improvement in consumer sentiment.

The Consumer Reports Index, an overall measure of Americans’ personal financial health, saw a sharp improvement in its consumer sentiment measure, which jumped to its highest level since October 2008.

The rise in sentiment (53.1 from 47.5 the previous month) was broad-based, with significant gains among those Americans in households earning less than $50,000 (+5.5 pts) as well as more affluent households earning $100,000 or more (+7.7 pts).

“With more than half the country earning less than 50,000, any improvement among that group may have a significant impact on the economy. They still have some distance to climb, but these are positive signs,” said Ed Farrell, director of consumer insight at the Consumer Reports National Research Center.

The improvement in consumers’ mood was supported by a decline in financial difficulties, which reached the lowest level since first measured in April 2009. The Consumer Reports Index’s Trouble Tracker, a gauge of financial difficulties faced by Americans in the past 30 days, dropped to 41.8, down from 46.5 last month.

After a five-month slide, the index’s past 30-day retail measure moved upward this month to 9.9 from 8.9 a month earlier, but is virtually unchanged from a year ago (10.2). Planned purchasing over the next 30 days (8.6), reflecting intent to buy in July, was also up versus last month (7.0), but lags last year at this time (7.7).

“This positive start to the summer, with all measures moving in a favorable direction, indicates a better economic picture overall. Over the past four years, we have seen that gains can prove to be fragile. Holding and building on these improvements will depend most on continued job growth to ensure a durable gain in the consumer outlook,” Farrell said.

Source: retailingtoday.com

The Conference Board Consumer Confidence Index^®, which had declined in May, fell further in June. The Index now stands at 62.0 (1985=100), down from 64.4 in May. The Expectations Index declined to 72.3 from 77.3. The Present Situation Index, however, increased to 46.6 from 44.9 last month.

Says Lynn Franco, Director of Economic Indicators at The Conference Board: “Consumer Confidence declined in June, the fourth consecutive moderate decline. Consumers were somewhat more positive about current conditions, but slightly more pessimistic about the short-term outlook. Income expectations, which had improved last month, declined in June. If this trend continues, spending may be restrained in the short-term. The improvement in the Present Situation Index, coupled with a moderate softening in consumer expectations, suggests there will be little change in the pace of economic activity in the near-term.”

Consumers’ assessment of current conditions improved slightly in June. Those claiming business conditions are “good” increased to 14.9 percent from 13.6 percent, however, those saying business conditions are “bad” increased to 35.1 percent from 34.7 percent. Consumers’ appraisal of the job market was mixed. Those stating jobs are “hard to get” increased to 41.5 percent from 40.9 percent, while those claiming jobs are “plentiful” increased to 7.8 percent from 7.5 percent.

Consumers have grown less upbeat about the short-term outlook. The percentage of consumers anticipating business conditions to improve over the next six months declined to 15.5 percent from 16.6 percent, while those expecting business conditions will worsen increased to 16.2 percent from 12.9 percent. Consumers’ outlook for the labor market was mixed. Those anticipating more jobs in the months ahead declined to 14.1 percent from 15.4 percent, while those expecting fewer jobs also declined to 20.6 percent from 21.5 percent. The proportion of consumers expecting an increase in their incomes declined to 14.8 percent from 15.7 percent.

Source:  The Conference Board

Total U.S. shopper traffic in retail stores and malls for June 2012

Summer retail is heating up. June brought high temperatures and a steady stream of shoppers to stores across the nation. Retail foot traffic in June increased 5.2% compared with the previous month and 7% over the same period last year.  Retailers saw a peak mid-month as shoppers splurged on Dad for Father’s Day on June 17. Retailers also benefited from June containing the last Friday and Saturday leading up to the week of July 4. Shoppers capitalized on the mid-week holiday by starting vacations early or browsing for celebratory items on those days.

Shoppers in search of seasonal merchandise and a break from the heat found their way to retail stores – especially on weekends last month. And this June contained one more Saturday than last year.

Declining gasoline prices further ensured a steady stream of shoppers. ShopperTrak correlates lower gasoline prices to higher foot-traffic rates. When shoppers spend less money at the pump, data indicates they are more inclined to make car trips and visit more stores. Since gasoline prices dropped over the last five weeks, retailers reaped the benefits.

Year-over-year changes in foot traffic have been trending positively since President’s Day 2012, and the people counting company expects the pattern to continue through August if gas prices remain low. This trend may also translate into additional disposable income to spend during the back-to-school shopping season. 

Source: retailingtoday.com

Walmart observed its 50th anniversary in fine fashion this week as its share price hit an all-time high.

Walmart shares closed Tuesday at an all time high of $70.75, nearly 18% above the $59.97 level where they began the year and more than 46% above the 52-week low price of $48.31 seen late last summer. The move is nothing short of remarkable considering an investment in Walmart was dead money for the past dozen years as shares traded for a little more than $69 back in December 1999.

The recent run up comes as Walmart has logged three consecutive quarters of accelerating same store sales growth. Analysts are optimistic the company continues to experience favorable sales trends during the second quarter, especially in its U.S. stores, as merchandising initiatives to broaden assortment and more effective marketing around a familiar low price message are gaining traction, just as moderating gas prices are leaving the company’s core shoppers with more money to spend.

The company’s improved stock price performance also is likely having an intangible effect on employee morale in stores, where the stock price is posted in common areas each day, and at the company’s home office.

Source: retailingtoday.com

Online measurement firm comScore is out with its top 50 web properties report and Walmart.com must be doing something right, judging from a surge in traffic.

Walmart.com was ranked 24th on the top 50 list for May, with 42.4 million unique visitors, a 9% increase from the prior month when comScore showed Walmart.com had 38.8 million unique visitors in April. The gain in web traffic over the same month the prior year is even more substantial, as Walmart.com registered a 26.2% increase from a May 2011 unique visitor total of 33.6 million.

As for Amazon.com, the company Walmart.com is continually measured against, it continues to attract more than double the number of unique monthly visitors as Walmart.com, but its traffic situation looks very different. For starters, comScore shows May traffic at Amazon.com registered 99.4 million visitors, down from 101 million visitors in April. When compared with the same month the prior year, Amazon.com’s unique monthly visitor total increased a modest 4.7% rate, according to comScore data.

Source: retailingtoday.com

After a surprisingly strong first quarter, consumers have slowed their spending in May, according to the latest report from the National Retail Federation. The NRF reported that May retail sales (excluding automobile, gas stations and restaurants) decreased 0.3% seasonally adjusted from April, but increased 4.8% unadjusted year-over-year, marking 23 consecutive months of retail sales growth.

“As the first industry to feel any backlash from consumers’ attitudes about the revival of the economy, retailers are far from discouraged by May’s sales report.  It’s evident that consumers are simply taking a breath,” said NRF Ppresident and CEO Matthew Shay. “Going forward, retailers will make sure to keep a steady eye on key economic indicators, being cautious with inventory and promotions as back to school – the second biggest time of the year – approaches.”

May retail sales, released by the U.S. Department of Commerce, showed total retail and food services sales (which includes non-general merchandise categories such as automobiles, gasoline stations, and restaurants) decreased 0.2 percent seasonally adjusted month-to-month but increased 7.1% unadjusted year-over-year.

“Overall, consumers are benefiting from the slow but steady decline in gasoline prices and we expect growth will resume, and should pick up through the fall,” said NRF chief economist Jack Kleinhenz.

Other findings from the May retail sales figures include:

• Clothing and clothing accessories stores’ sales increased 0.9% seasonally-adjusted month-to-month and increased 7.3% unadjusted year-over-year.

• Electronics and appliance stores’ sales increased 0.8% seasonally-adjusted month-to-month and 1.2% unadjusted year-over-year.

• Furniture and home furnishing stores’ sales increased 0.4% seasonally-adjusted month-to-month and 11.4% unadjusted year-over-year. 

• Health and personal care stores’ sales decreased 0.1% seasonally-adjusted month-to-month but increased 3.1% unadjusted year-over-year. 

• Sporting goods, hobby, book and music stores’ sales decreased 0.1% seasonally-adjusted month-to-month but increased 9.1% unadjusted year-over-year.

Source: retailingtoday.com

Source:  census.gov