Retail sales stage comeback in October
Retail sales bounced back strongly in October as the economy remained in good shape and consumers moved past concerns about a port strike and other issues that put a crimp in September’s sales.
That’s according to the National Retail Federation, whose CNBC/NRF Retail Monitor powered by Affinity Solutions showed that core retail sales (excluding restaurants, automobiles dealers and gasoline stations) rose 0.83% month-over-month in October and up 4.59% year-over-year. That compared to a decrease of 0.28% month-over-month and an increase of 0.94% year-over-year in September.
Total retail sales (including restaurants but excluding automobiles and gasoline) were up 0.74% month-over-month and up 4.13% unadjusted year-over-year in October, according to the Retail Monitor. That compared to a decrease of 0.32% month-over-month and an increase of 0.55% year-over-year in September, when shoppers showed caution due to geopolitical tensions, a strike at East and Gulf Coast ports and the end of student loan relief programs.
The year-over-year increase for total sales was the largest since 4.24% in November 2023 while the year-over-year increase for core sales was the largest since 4.76% in August 2023, NRF noted. Total sales were up 2.13% year-over-year for the first 10 months of 2024, and core sales were up 2.42%.
“Healthy spending resumed in October as consumers continued to benefit from this year’s job gains and higher wages,” stated NRF president and CEO Matthew Shay. “Inflation is mostly limited to services at this point and prices for some retail goods are actually falling. October sales have set the stage for a good start to the holiday shopping season.”
Unlike survey-based numbers collected by the Census Bureau, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.
October sales were up in seven categories on a monthly basis, led by sporting goods/hobby/music/book stores, online, building/garden supply stores and health/personal care stores. Sales also rose in seven out of nine retail categories on a yearly basis.
Specifics from key sectors for October include:
•Online and other non-store sales were up 1.84% month-over-month seasonally adjusted and up 19.38% year-over-year unadjusted.
•Clothing and accessories stores were down 0.57% month-over-month seasonally adjusted but up 8.56% year-over-year unadjusted.
•Health and personal care stores were up 1.45% month-over-month seasonally adjusted and up 8.35% year-over-year unadjusted.
•General merchandise stores were up 0.05% month-over-month seasonally adjusted and up 5.51% year-over-year unadjusted.
•Grocery and beverage stores were up 0.87% month-over-month and up 3.76% year-over-year.
•Building and garden supply stores were up 1.69% month-over-month and up 3.12% year-over-year.
•Furniture and home furnishings stores were up 0.58% month-over-month and up 1.87% year-over-year.
•Electronics and appliance stores were down 0.81% month-over-month and down 0.64% year-over-year.
•Sporting goods, hobby, music and book stores were up 2.7% month-over-month but down 1.23% year-over-year.
