Total Apparel sales recorded their eighth consecutive year-over-year sales gains in March, increasing by 4.4% year-over-year, according to preliminary estimates by MasterCard Advisors SpendingPulse, a macroeconomic report tracking national retail and services sales.
All but one of the apparel sub-sectors recorded year-over-year sales growth in March. Children’s wear stayed above 10%, while the Women’s category was in the 6-7% range. The only sub-sector posting a loss was Footwear, with sales declining 1.6%. The Easter calendar shift may have limited the year-over-year growth in the Men’s and Women’s Apparel segments.
Electronics sales and Department stores showed modest gains while Luxury and e-Commerce recorded strong growth, the report said. Some segments of the Restaurant sector also showed strength in March. The travel sectors, particularly airlines, saw improvement as well, although the growth in airline spending may be attributable in part to fuel surcharges.
Michael McNamara, Vice President, Research and Analysis for MasterCard Advisors SpendingPulse, notes, “Most retail sectors continued to record solid growth year-over-year, similar to February, although we’re not seeing an acceleration of momentum from February to March. The lack of increased momentum in some sectors could be due to calendar shifts, given that Easter falls very late this year.”
Mr. McNamara also observes that gasoline prices remain a concern as the average price continues to be above $3.50 a gallon. “Compared to March 2010, we’re seeing drivers pump less gasoline,” he notes. “Based on what we’ve observed in the last three to four years, high gasoline prices typically result in consumers consolidating shopping trips, shopping closer to home, and making fewer trips to the brick and mortar locations as we get to Saturday. On the other hand, we’ve seen the e-Commerce channel benefitting somewhat from this trend.”
e-Commerce continued to grow in double digits, highlighting the continued strength in online sales. The sector posted its fifth consecutive month of double-digit growth, rising by 16.1%, higher than February’s 13.2% increase. Online Total Apparel grew by 18.7%, marking the 16th straight double-digit increase. The sub-categories of apparel also grew robustly, as did Department Stores at 8.4% and Electronics at 14%.
The SpendingPulse Luxury Index, which measures sales at high-end restaurants, food stores, department stores and general apparel categories, was up 8.5%, the largest year-over-year increase since December 2010, and the sixth consecutive month of growth.
