True to earlier predictions for a weak back-to-school shopping season, latest reports from the census bureau show retail sales for August fell just shy of expectations, according Andrew Soergel of US News and World Report. This casts doubt on whether consumers are feeling secure enough about the U.S. economy to start splurging.
While August’s sluggishness isn’t a huge surprise, it seems to send a message that spending on back-to-school purchases just isn’t as important as it once was. If this is true, it could dramatically disrupt an industry that traditionally relies on this time period as an important source of annual sales.
Although U.S. food and retail services sales last month came In at +0.2 percent compared to the +0.3 percent gain predicted, other retail sales categories were up from August. Motor vehicle/parts dealers climbed to 0.7 percent, health and personal care stores jumped to 0.8 percent, and miscellaneous store retailers posted gains of 0.9 percent.
Monthly losses were posted by only a few major store components; furniture and home furnishings (-0.9 percent) and building materials and garden equipment supplies (-1.8 percent). Gas stations dropped to -1.8 percent, probably because as gas prices go down, as they did this year, consumers spend less money on gas. This drags down the sales numbers.
Many argue that the sales numbers are not totally accurate because people are spending strongly on recreation and gambling, and these numbers aren’t being calculated into the equation.
Regardless of the numbers, it’s still important for retailers to keep track of their own customers, know what and when they’re buying, and to keep inventories in line with what’s being purchased. This can be easily accomplished by using NCR’ s Counterpoint Point of Sale Software. For more information, call us today at 800/425-672-4806 or email us. We have the answers for you!
Marlene