Research Topic

The big get bigger.   The Home Depot reported record sales and net income as it revised upward its expectations for the full year.   The world’s largest home improvement retailer Tuesday morning posted second quarter sales of $26.5 billion, up 6.6% from the second quarter a year ago. Comparable store sales were up 4.7%, and up 5.4% in the U.S.   Net earnings were $2.4 billion, up from $2.2 billion.  

Shoppers are opening their pocketbooks for back-to-school spending this year.   Parents expect to spend an average of $1,642 on back-to-school expenses this year, up significantly from $1,239 in 2015, according to the American Express Spending & Saving Tracker report.   Parents are expected to spend more on musical instruments this ($267 vs. $194 in 2015), along with mobile devices ($172 vs. $125 in 2015).   

Self-service checkout technology, including dedicated lanes and smartphone apps, may translate into an increased shrinkage rate for retailers.   That’s according to a study of retailers in the United States, Britain and other European countries conducted by the University of Leicester in England, the New York Times reported.  

Although it’s only August and the pendulum has plenty of time to swing in the other direction, retailers are feeling optimistic about the upcoming holiday season.   That’s according to a report by Fung Global Retail & Technology and First Insight, in which more than 60% of those surveyed said they believe that holiday sales will increase compared to last year, and about 25% expect sales to increase 5% to 10%.     

Consumers cooled their spending in July.

Consumers cooled their spending in July.    Retail sales were flat in July, in line with a revised 0.8% gain in June, according to figures released Friday by the Commerce Department. The report ended three straight months of monthly gains.     Sales in July rose 2.3% from a year ago. Excluding automobiles and parts sales, sales fell 0.3% in July — the weakest reading since January, after a 0.9% gain in the prior month.     

Reducing credit and debit card fraud by implementing EMV chip card acceptance has become retailers’ top payment issue in 2016.