Value-Seeking Shoppers Boosted Sales in July: Report
The latest insights from the National Retail Federation affirmed that some shoppers got into the back-to-school swing early this year. Their buying-mode behavior was attributed to the ongoing search for value in a market that is still marked by economic uncertainty.
Summed up NRF President and CEO Matthew Shay: “July’s data reflects what we are seeing across the economy, that while consumers remain cautious, they are still spending on essentials when they find value. Labor market trends have softened recently and interest rates remain high, but economic fundamentals are intact and inflation has fallen to nearly zero for goods even though prices for services are elevated. July sales were likely bolstered by back-to-school and back-to-college spending, which was reflected in gains for retailers selling everything from clothing and crayons to computers and dorm room furnishings.”
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The new CNBC/NRF Retail Monitor results showed a slight 0.95% bump in core retail sales in July, excluding gasoline, cars and restaurants. From a grocery POV, sales ticked up 0.6% from the prior month and rose 0.47% compared to July 2023, reflecting the climate of caution.
The slight gain in grocery sales last month came as sales edged down in other retail sectors, including health and personal care stores (-0.5%) and building and garden stores (-0.53%).
Sales at general merchandise stores increased 1.75% over June, while online sales were up 0.82% during that same time frame. Some of those figures reflect back-to-school purchase and the impact of big sales promotions conducted by major mass market players including Amazon, Walmart and Target Corp.
