MasterCard Advisors: September sales tepid

New York City Sales in September continued to show tepid growth compared with retail sales a year ago, according to MasterCard Advisors’ SpendingPulse, a report tracking national retail and service sales. From a sector-by-sector point of view, some categories built on the momentum from August, while others showed lackluster performance, tending towards the flat to slightly down, compared to the same month in 2009. (The report estimates are for total U.S. retail sales across all payment forms, cards, cash and check. It is not a measure of MasterCard financial performance.)

“Overall, September continued the pattern we have observed of consumers spending selectively and leaning towards non-discretionary rather than discretionary items,” said Michael McNamara, VP research and analysis for SpendingPulse.” The month benefited from late back-to-school shopping, with some apparel shopping pushed back from August to September as parents postpone fall and winter purchases until the cooler weather arrives.”

For the second consecutive month, total U.S. apparel sales posted a year-over-year gain, up 3.8%, following the 2.6% gain in August. This was the year’s second largest year-over-year gain in the sector, which has now posted increases in six out of nine months year-to-date. As it did in August, the children’s and family segments drove the growth in this category, posting year-over-year increases of 2.3% and 7.9% respectively. Footwear was up 0.7%, slightly more modest than August’s 0.9% increase.

The consumer electronics and appliances category recorded its fourth consecutive month of year-over-year gains, a run that started in June after a brief respite in May. September’s increase was 4.3% year-over-year, surpassing the 3.5% increase we saw in August. Most of the growth in September occurred in the $500 to $1,000 price range, as well as the under $25 price range.

E-commerce sales posted a year-over-year growth rate slightly higher than that of August, up 7.8%, with the apparel sub-category leading the way with an increase of 13.4%, and all sub-categories except jewelry being comfortably in positive territory.