Retail sales beat February estimates as consumers adjusted their spending in response to an increase in payroll taxes and higher gasoline prices, according to the National Retail Federation (NRF).

February retail sales -- excluding automobiles, gas stations and restaurants -- increased 0.7 percent seasonally adjusted from January and increased 0.5 percent unadjusted year-over-year.

“Retail continues to show its importance to the economy,” said Matthew Shay, NRF president and CEO. “That said, our consumer research consistently shows a cautious shopper that is making tough spending decisions based upon economic uncertainties, lower paychecks and higher prices for things such as gas."

"This is particularly true among those making $50,000 or less a year,” Shay continued. “While retail sales numbers indicate good momentum for the economy, consumers with less earning power may continue to face ongoing pressure and retail sales will encounter further challenges as sequestration takes full effect in March.”

According to the U.S. Department of Commerce, last month’s total retail and food services sales -- which include non-general merchandise categories such as automobiles, gasoline stations and restaurants -- increased 1.1 percent seasonally adjusted month-to-month and increased 4.6 percent adjusted year-over-year.

“Consumers, once again, exceeded economists’ expectations and estimates in February,” said Jack Kleinhenz, NRF chief economist. “It may be too early to measure the impact of the payroll tax hike and higher gasoline prices on consumer spending. However, this portends a good, but not great, first quarter for retailers as consumers continue to breathe life into the economy.”

Other findings from the February retail sales report include:

• Building material & garden equipment and supplies dealers stores’ sales increased 1.1 percent seasonally-adjusted and increased 0.9 percent unadjusted year-over-year.
• Clothing and clothing accessories stores' sales increased 0.2 percent seasonally-adjusted month-to-month and increased 0.4 percent unadjusted year-over-year.
• Electronics and appliance stores’ sales decreased 0.2 percent seasonally-adjusted month-to-month and decreased 3.2 percent unadjusted year-over-year.
• Furniture and home furnishing stores’ sales decreased 1.6 percent seasonally-adjusted month-to-month and decreased 2.0 percent unadjusted year-over-year.
• General merchandise stores’ sales increased 0.5 seasonally-adjusted month-to-month and decreased 4.7 percent unadjusted year-over-year.
• Health and personal care stores’ sales were flat seasonally-adjusted month-to-month and decreased 2.9 percent unadjusted year-over-year.
• Nonstore retailers’ sales increased 1.6 percent seasonally-adjusted month-to-month and increased 11.6 percent unadjusted year-over-year.
• Sporting goods, hobby, book and music stores’ sales decreased 0.9 percent seasonally-adjusted month-to-month and increased 0.6 percent unadjusted year-over-year.

The NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad.

Log in to post a comment.

Email: Password: New account   Forget password

Register to post a comment
First Name *
Last Name *
Title *
Company *
Email *
What is the number of stores your company operates? *	--- 201 or more stores 51-200 stores 11-50 stores 4-10 stores 2-3 stores Single store None of the above
Which of the following categories do you recommend, specify, or approve for your company? *	Human Resources/Labor Relations Marketing Merchandising MIS/DP/Scanning/Technology Planning/Real Estate/Consultant Retail Services/Store Operations Warehouse/Transportation Distributor Frozen Food Health and Beauty Care Grocery Health and Wellness Produce Pharmacy Bakery Meat/Seafood Beverage Dairy Nonfoods/General Merchandise Deli Gourmet/Specialty Foods Kitchenware/Houseware Products Food Service Private Label Brands Equipment/Fixture Other
If you selected Other in the question above, please specify:
Password *
Confirm password *
Enter the code seen above (case sensitive)