March retail sales released today by the Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) were up 2.1 percent for the month, the biggest monthly gain since October 2001. Commerce numbers looked especially strong in March after an unusually weak February, when winter storms forced many retailers to close over President’s Day weekend.
According to the National Retail Federation (NRF), March retail sales in the GAFS category (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) rose 0.5 percent seasonally adjusted from February, and declined 1.1 percent from the same period last year.
This year’s late Easter skewed GAFS sales year-over-year, with many consumers planning to purchase this year’s Easter merchandise in April, compared to last year, when Easter fell in March. NRF feels it will be necessary to combine both March and April retail sales to arrive at a clearer picture. A recent survey by the National Retail Federation found that the average consumer who would celebrate Easter planned to spend more than $100 on the holiday.
“Considering the external environment, including the start of the war with Iraq and a weak economy, retail sales were much higher than expected,” said NRF Chief Economist Rosalind Wells. “Now that it appears the war will be shorter rather than longer, the outlook for improvement in the economy in the second half of the year appears positive.”
Supporting retail sales in March were building material and garden equipment and supplies dealers. The beginning of spring saw sales at these stores increase 7.2 percent unadjusted year-over-year and 7.9 percent seasonally adjusted month-to-month. Additionally, health and personal care stores showed growth in March, rising a solid 2.8 percent unadjusted for the year and 0.4 percent seasonally adjusted month-to-month, due to many consumers modifying their spending to purchase items of necessity. General merchandise stores also saw growth last month, posting a 0.6 percent unadjusted gain year-over-year and 0.3 percent seasonally adjusted month-to-month. Also performing well were apparel stores at 1.1 percent seasonally adjusted month-to-month and furniture and home furnishings stores at 1.5 percent seasonally adjusted month-to-month.
The National Retail Federation (NRF) is the world's largest retail trade association with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores as well as the industry’s key trading partners of retail goods and services. NRF members represent an industry that encompasses more than 1.4 million U.S. retail establishments, employs more than 20 million people -- about 1 in 5 American workers -- and registered 2002 sales of $3.6 trillion. NRF’s international members operate stores in more than 50 nations. In its role as the retail industry's umbrella group, NRF also represents 32 national and 50 state associations in the U.S. as well as 36 international associations representing retailers abroad.
For more information, visit http://www.nrf.com
