Retailer Daily

Retail Sales Trend Upward

U.S. retail and food services sales in May 2009 climbed 0.5% from April 2009, according to advance estimates from the U.S. Census Bureau. However, they were 9.6% lower than retail and food services sales in May 2008. Adjusted for seasonal variation and holiday and trading day differences, but not for price changes, U.S. retail and food service sales totaled $340 billion in May 2009, compared to $337.7 billion in April 2009 and $385.4 billion in May 2008. Total sales for the March-May period in 2009 were $1.02 trillion, down 9.7% from $1.14 trillion during the same period in 2008. Of the 19 separate retail and food service sectors tracked by the U.S. Census Bureau, 12 showed positive sales growth from April 2009. Only miscellaneous store retailers, with a 1.3% drop, had sales declined by a factor of more than 1%. Two sectors had sales improve by a factor of more than 1%. Gasoline stations led the way with a 3.6% increase, and building material/garden equipment/supplies dealers had a 1.3% increase. According to the Same-Store Sales Index, during May 2009, the wholesale discount club and drugstore verticals reported improved same-store sales, while the department store vertical reported continuing significant declines. The Same Store Sales Index does not track fuel sales. Recent news on consumer statistics have been mostly positive. Positive developments include the Employment Trends Index increasing from 89.7 in April 2009 to 89.9 in May 2009, its first improvement since February 2008. In addition, consumers’ personal income grew in April 2009, although consumer spending decreased. In May, the Consumer Confidence Index improved by 14.1 percentage points, and the April Restaurant Performance Index hit 98.6, largely aided by impressively high future expectations of restaurant retailers. One big negative is the continuing rise in the U.S. unemployment rate, which hit 9.4% in May 2009. The Advance Monthly Retail Sales for Retail and Food Services for June is scheduled to be released July 14, 2009.