U.S. August Retail Sales OK, Not More

Bad weather and a late Labor Day weekend effected consumers buying habits, resulting in 2 percent increase in August retail sales in the GAFS category over last year, but softening 0.4 percent over last July, says the National Retail Federation (NRF).

The GAFS category includes general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores

“August represented another notch in a schizophrenic summer for retail sales,” said NRF Chief Economist Rosalind Wells. “Retailers are hoping that fall and winter sales are more consistent and predictable.”

August retail sales released by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) dipped 0.3 percent seasonally adjusted over July and increased 4.6 percent unadjusted year-over-year.

The stronger rise was recorded is sales of sporting goods, book, hobby, and music stores, up 1.4 percent adjusted over July and 3 percent unadjusted over last year.

On the other side of the scale were clothing and clothing accessories stores, which saw a slight decline in sales with a decrease of 1.4 percent over July and a 0.4 percent drop over last year.

“Last August, the calendar, Mother Nature, and child tax credits aligned perfectly during the back-to-school season,” Wells explained. “This year, retailers weren't as fortunate.”

First quarter GAFS sales increased 9.9 percent and second quarter sales rose 6.8 percent. The NRF has forecast 2004 GAFS sales to grow 6.0 percent over last year.