The retail sector was stronger than the National Retail Federation had originally expected posting sales for September, excluding automobiles, gas stations, and restaurants, that rose 7.0% unadjusted over last year and increased 0.8% seasonally adjusted from August. The gains led third quarter sales to rise 6.4% over 2004.
“While many analysts expected consumers to hold back on spending as a result of higher gas prices, shoppers had other plans,” said NRF chief economist Rosalind Wells. “This is a good sign for retailers as they head into the holiday season.”
September 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) rose 0.2% seasonally adjusted from August and increased 7.1% unadjusted year-over-year. Gasoline sales, which NRF does not include in its calculation of retail industry sales, rose 36.2% unadjusted from last September.
Robust growth was seen in nearly every retail category last month, including furniture and home furnishings stores, which rose 1.2% adjusted from August and climbed an impressive 9.3% unadjusted over last year. Building material and garden equipment and supplies dealers also saw a surge, with sales rising 1.0% from August and 9.3% adjusted over last year. Additionally, strong year-over-year gains were seen at electronics and appliances stores (6.3%), food and beverage stores (6.1%), health and personal care stores (7.6%), and clothing and clothing accessories stores (5.8%).
NRF expects retail industry sales to increase 5.6% this year over 2004. Holiday sales, which are defined as retail industry sales in the full months of November and December, are expected to rise 5.0% to $435.3 billion.
