US retail sales dipped in September on a month-by-month comparison, however it is the time of year that is “historically soft for retail sales,” according to NRF president and CEO Matthew Shay.
September retail sales in the US were impacted by consumer confidence.
“Due to geopolitical tensions, uncertainty regarding election outcomes, anticipation of the port strike and lingering inflation in services, shoppers displayed caution, however, year-over-year gains showed consumers were still spending on household priorities,” said the National Retail Federation’s Shay.
But clothing sales appeared to buck the trend in September, leading a sales rise of nine retail categories with a 1.06% month-over-month jump and 10.31% year-over-year jump, unadjusted.
According to the CNBC/NRF Retail Monitor, powered by Affinity Solutions total retail sales, excluding automobiles and gasoline, were down 0.32% seasonally adjusted month over month but up 0.55% unadjusted year over year in September, according to the Retail Monitor. That compared with increases of 0.45% month over month and 2.11% year over year in August.
The Retail Monitor calculation of core retail sales (excluding restaurants in addition to automobiles dealers and gasoline stations) was down 0.28% month over month in September but up 0.94% year over year. That compared with increases of 0.17% month over month and 1.93% year over year in August.
The month-over-month decline was the first since January for both total and core sales and only the second since the Retail Monitor began tracking sales in October 2022. Total sales were up 1.91% year over year for the first nine months of 2024 and core sales were up 2.18%.
Commenting on the results, Nikki Baird, VP of strategy and product at Aptos, a retail technology company, said retailers must up their game to capture consumer spend.
“The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to underinvest in their stores. Investments in labour, investments in customer experience tech, investments in digital transformation of the store … it’s been too easy to kick the can down the road until you suddenly realise there’s no road left.
“The holiday season is coming up fast. A focus on value proposition and customer experience is going to be what it takes to win.
“Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars.”
Matt Pavich, senior director of strategy and innovation at Revionics, an Aptos company specialising in pricing optimisation and outcomes, added consumers continue to seek value.
“Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals.”
Source from Just Style
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