US retail sales numbers for May showed a slight slowdown in bigger ticket sectors as still-cautious shoppers weighed their options carefully, research agency Conlumino has revealed.
Retail sales remained positive in May, and pure retail stayed at a growth rate only slightly down from the month of April. But poorer performances in the automotive and food service sectors helped push the downward trend.
Car sales were down by around 15.6% in unit terms on 2015, while 'tough comparatives' from last year and intense price competition both affected the bottom line of the US food sector.
Recent consumer confidence data has shown mixed results. While customers are happier with their current financial situations, they are less sure about the future of the economy.
Therefore, customers are more careful about bigger purchases, which require credit and are paid off over time.
But they still feel positive about making everyday, smaller purchases, bumping up revenue in other areas, Conlumino said.
Home improvement vendors performed well with a 5.2% sales increase on 2015, boosted by home movers. The warm weather encouraged shoppers to purchase gardening and outdoor items.
Sports retailers were also successful, as customers helped prop up sales by buying items for outdoor activities during the countdown to Memorial Day.
However, clothing continued to slide, dropping 2.4%. Unseasonable weather, high concentration of discounts, and a 'slight boredom' with apparel had hit the sector, the firm said.
The previous uptick in furniture sales also went backwards, with furniture and home stores reporting a 0.8% drop in year-on-year revenue.
Neil Saunders, CEO of Conlumino, commented: "We have noted from our own consumer polling, rising concerns over future interest rate increases. This is not yet having a tangible impact on spending decisions, but if implemented a rate rise could well act as a further brake on retail growth."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.
