Retail sales growth improved in December, according to just-released US Department of Commerce data. Total sales rose by a better-than-expected 4.5% on a 12-month smoothed basis, beating both October’s and November’s growth rates, but still relatively low compared to the high-single-digit gains of early 2011. The data suggest that although consumers are spending, they’re doing so in a careful, measured way.
Autos had a positive impact on total sales last month. Taking autos out of the mix, total retail sales increased by only 3.1%.
Total retail inventory increased by 7.2% in November (the most recent month for which this measure is available), less than October’s increase. The total retail inventory-to-sales ratio remained flat.
Department, discount and chain store sales fell by over 2.5% in December, a slightly better performance than in November, when sales were down by 3.6% on a 12-month smoothed basis. The extra weekend in the Holiday selling season helped stores recover from the impact of Superstorm Sandy. Many retail chains implemented major promotions during the season, which experts fear might have invigorated sales at the expense of profitability. Big store inventory plunged by 5.8%, and the inventory-to-sales ratio fell slightly as well.
The specialty apparel store sector had a pretty good month, however. Sales growth increased to 4.6% in December after inventory rose 3.3% the month before. The inventory to sales ratio was flat in November.
The combined department, chain, discount and apparel specialty retail sector, a traditionally reliable barometer of total apparel sales, enjoyed a sales improvement of 1.4% on a 12-month smoothed basis, better than the prior month, in which sales growth for the combined sectors was negligible.
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| Retail Sales & Inventory | |||
| $MM — Adjusted for Seasonality | |||
|
Dec-12 |
Nov-12 |
Dec-11 |
|
| Total US Retail Sales |
415,695 |
413,582 |
396,974 |
| Department Store Sales |
15,051 |
15,003 |
15,318 |
| Apparel Specialty Stores |
20,301 |
20,099 |
19,319 |
| Total Dept & Specialty |
35,352 |
35,102 |
34,637 |
|
Nov-12 |
Oct-12 |
Nov-11 |
|
| M & B Specialty Sales |
N/A |
N/A |
N/A |
| W & G Specialty Sales |
3,507 |
3,526 |
3,291 |
| Total Retail Inventory |
507,404 |
506,076 |
470,478 |
| Dept Store Inventory |
29,279 |
29,596 |
30,714 |
| Apparel Specialty Inv |
48,034 |
47,924 |
46,283 |
| Dept & Spec Inv:Sales |
2.19 |
2.21 |
2.22 |