Gasoline Fuels Retail Sales Growth - Update
According to the July 2010 Advance Monthly Retail Trade Survey from the U.S. Census Bureau, U.S. retail and food service sales rose 0.4% on a monthly basis and 5.5% on a yearly basis.
In July 2010, U.S. retail and food service sales totaled $362.7 billion, compared to $361.2 billion in June 2010 and $343.4 billion in July 2009. On a monthly basis, this reverses two straight sales decrease, which in turn followed a four-month streak of gradually slowing monthly U.S. retail and food service sales increases.
For the fifth straight month, gasoline stations reported dramatic annual growth (12.2% in July 2010, following an 8.8% rise in June 2010 and more impressive gains of 20.2% in May 2010, 30% in April 2010, 26.4% in March 2010 and 24% in February 2010). Sales at non-store retailers were up 12.6% year-over-year, compared to 12.1% in June 2010 and 15.6% in May 2010.
Sales in all 13 separate primary retail and food service sectors tracked by the U.S. Census Bureau rose on an annual basis. Despite the slight overall monthly retail sales increase, seven reported monthly sales increases and six reported monthly sales decreases.
The most significant monthly sales increase on a percentage basis was a 2.3% hike at gasoline stations. The largest monthly decrease was a minor 0.6% drop at clothing and accessories retailers.
Other sectors reporting month-over-month sales increases were motor vehicle & parts retailers, health and personal care stores, miscellaneous store retailers, general merchandise stores, non-store retailers, and food services and drinking places. Sales declined at electronics and appliance stores, furniture and home furnishings stores, building materials, garden equipment and supplies stores, sporting goods, hobby, book and music stores, and food and beverage stores.
July Chain Store Sales Rise Less than Expected
U.S. chain‐store sales for July 2010 rose by 2.8% on a year‐over‐year basis, according to the International Council of Shopping Centers (ICSC) and Goldman-Sachs. This performance was below ICSC’s expectation for industry sales growth of 3‐4%.
Looking ahead to August 2010, ICSC anticipates that year‐over‐year sales growth will be up about 3%, which is a continuation of the recent trend. Through July 2010, chain store sales are up 5.4% for the year.
Because of the abnormally warm weather in July, ICSC is not currently predicting back-to-school sales will be slower than expected this season.