NRF

Shoppers turned out in force in July, driving retail sales to their largest gain since December 2016.   Retail sales in July increased by 0.6% June on a seasonally adjusted basis, triple the revised 0.2% growth seen in June, according to the National Retail Federation. Sales have increased by 3.5% year-over-year. (The NRF numbers exclude automobiles, gasoline stations and restaurants.)  

Target Corp. and Best Buy didn't just talk the talk when it came to killing a border adjustment tax on imports that was the centerpiece of House Republicans tax reform plan.    In the first six months of 2017, Best Buy spent $1.71 million in lobbying efforts, twice as much as it spent the entire year in 2016, the Star Tribune reported. Target Corp. spent $1.48 million lobbying from January through June 2017, which was slightly less than it spent all of last year.  

The retail industry lost jobs in July.   Retail industry employment declined slightly in July, decreasing 1,700 jobs from June, according to the National Retail Federation. On a three-month average, retail jobs have decreased by 4,200 jobs as calculated by NRF. (The numbers exclude automobile dealers, gasoline stations and restaurants.) On a positive note, the economy overall saw gains of 209,000 jobs in July, exceeding growth expectations for the month.  

The import tax proposal has officially been removed from the tax reform plan — which is welcome news for retailers across the industry.   On Thursday, congressional and administration leaders announced they would remove the Border Adjustment Tax (BAT) from consideration, and announced an outline for comprehensive tax reform. The BAT provision would have ended importers’ ability to deduct the cost of merchandise purchased from other countries.   

Cautious consumers kept spending in check in May.     Retail sales in May were essentially unchanged on a seasonally adjusted basis after an upwardly revised gain of 0.6% in April, according to the National Retail Federation. The NRF numbers exclude automobiles, gasoline stations and restaurants.   In May, sales were 5.3% above the year-ago level on an unadjusted basis and increased four percent on a 3-month moving average year-over-year.   

The retail industry's two major organizations are applauding reports that the House will drop efforts to repeal debit card swipe reform.   

Twenty retail executives traveled to the nation's capitol on Wednesday to voice their opposition to the proposed border adjustment tax (BAT).   

The National Retail Federation continues to lead the charge against the consumption tax and the proposed border adjustment tax.   The NRF on Thursday today urged Congress to focus on updating the existing federal income tax system rather than moving toward a consumption tax. Under either approach, Congress should reject a proposed $1 trillion border adjustment tax that would drive up prices for consumers and cost the economy jobs, NRF said.