Subscribe to our free, weekly email newsletter!


August retail sales show modest gains, according to Commerce and NRF data

By Jeff Berman, Group News Editor
September 14, 2010

Retail sales in August showed modest increases, according to data released earlier today by the United States Department of Commerce and the National Retail Federation (NRF). 

August retail sales, which include non-general merchandise like automobiles, gasoline, and restaurants, at $363.7 billion, were up 0.4 percent from July and up 3.6 percent year-over-year, according to the Department of Commerce. And Commerce added that total retail sales from through June through August of this year were up 4.7 percent year-over-year.

The NRF reported that August retail sales (which exclude automobiles, gas stations, and restaurants) increased 3.0 percent unadjusted year-over-year and increased 0.5 percent seasonally-adjusted compared to July.

“While the underlying trends remain positive, shoppers are still focused on getting their finances in order,” said NRF Chief Economist Jack Kleinhenz. “The challenge for retailers is to convince consumers that the recession is over and to buy accordingly.”

As LM has reported, the first half of 2010 showed a fair amount of promise in terms of sustained economic growth. The second half, so far, has been a different story, with unemployment at 9.5 percent, sluggish consumer spending, and declining—or stagnant— volumes in some modes of freight transportation. But even with signs of volumes weakening, they still remain above dismal 2009 levels. One driver for this is due to manufacturers and retailers slowly building up inventories after deliberately keeping them low for months to better match up with low demand levels during the recession.

A separate report from Commerce today said that business inventories were up 1.0 percent in July and up 2.4 percent from the level in July 2009.  The report also stated that inventory sales were up 0.7 percent in July from the prior month and were up 9.2 percent year-over-year. If this trend continues, it could bode well for freight transportation carriers in the coming months ahead.

But according to Charles “Chuck” Clowdis, Managing Director, North America Global Commerce & Transport Advisory Services, at IHS Global Insight, the most recent batch of retail sales numbers is disappointing overall.

“Earlier this year, there was some pent-up demand and inventory replenishment occurring, and consumers seemed to be making more purchases,” said Clowdis. “I was expecting things to be better in August with back to school sales. But I don’t think happened on the level that was expected.”

The relative flattening of retail sales in July and August has brought back a type of freight malaise that had been apparent for several quarters prior to the optimism surrounding the first half of the year, said Clowdis. And he added that the best season of the year may have already occurred in 2010, unlike in typical good years when the heaviest freight volumes occur in October. This sentiment is similar to the recent Port Tracker report from the NRF and Hackett Associates, which noted that July may prove to be the busiest month of the year.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

February manufacturing data issued today by the Institute for Supply Management (ISM) dipped slightly compared to January, according to the most recent edition of the organization’s Manufacturing Report on Business.

As U.S. West Coast ports begin to address their critical congestion issues, an innovative approach is being launched at San Pedro Bay.

The ongoing financial travails of the Highway Trust Fund was made clear in a position paper recently issued by Jeff Davis, senior fellow at the Eno Center for Transportation. In the paper–entitled “Why Not A Ten-Year Surface Transportation Bill?”-Davis points to past federal transportation bills, as well as the White House’s GROW AMERICA proposal as having one fatal flaw in common: they each leave the HTF on worst financial shape after the bill expires than it was prior to the bill being enacted.

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA