NRF: August Saw Mixed Results at Retail

The tide has turned again. As expected, consumers last month were impacted by severe weather throughout the country, shifting school schedules, and a late Labor Day weekend. According to the National Retail Federation (NRF), August retail sales in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) rose 2.0% over last year but dipped 0.4% over July.

“August represented another notch in a schizophrenic summer for retail sales,” said NRF Chief Economist Rosalind Wells. “Retailers are hoping that fall and winter sales are more consistent and predictable.”

August retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) dipped 0.3% seasonally adjusted over July and increased 4.6% unadjusted year-over-year.

Despite the overall decline, several retail sectors saw strong sales in August. Sales at sporting goods, book, hobby, and music stores rose 1.4% adjusted over July and 3.0% unadjusted over last year. Additionally, electronics and appliances stores increased 0.1% over July and 5.2% over last year.

Hardest-hit sectors in August included clothing and clothing accessories stores, which saw a slight decline in sales with a decrease of 1.4% over July and a 0.4% drop over last year. Sales at general merchandise stores were also down 0.4% over July though they increased 1.4% over a year ago. Furniture and home furnishings stores experienced a slight decline, falling 0.9% seasonally adjusted from July though continuing to rise 5.3% over last year.

“Last August, the calendar, Mother Nature, and child tax credits aligned perfectly during the back-to-school season,” said Wells. “This year, retailers weren't as fortunate.”

First quarter GAFS sales increased 9.9% and second quarter sales rose 6.8%. The NRF has forecast 2004 GAFS sales to grow 6.0% over last year.