February Retail Sales Disappoint, As Winter Chill Cooled Shopper Spending

Author

Barbara Thau, Contributor

March 13, 2015

The harsh winter kept many shoppers out of stores in February, and just as temperatures dropped, so did retail sales, according to the National Retail Federation.

Excluding automobiles, gasoline stations and restaurants, February retail sales slipped 0.2% on a seasonally adjusted, month-to-month basis.

“Big picture, we thought retail sales should have been a little bit stronger, they felt like a disappointment, because of the recent [economic] momentum,” Jack Kleinhenz, chief economist for the NRF, told Forbes.

“We had a number of people being employed, more than one million jobs were added in the last two or three months,” which typically means more income and spending, he said.

However “the weather was a major deterrent to spending in February.” Indeed, frigid weather “was very widespread, reaching all the way down to Florida.”

But there were some bright spots.

•February sales at sporting goods, hobby, and book and music stores rose 2.3% from January, and increased 3.3% year-over-year.

Sporting goods retailers, which sell winter wear, likely benefited from the cold spell, Kleinhenz said.

•Online and other “non-store retailers,” such as infomercial broadcasts, were another bright spot last month: The segment’s sales jumped 2.3% month-to-month, and increased a robust 6.1% year-over-year.

•And although sales at health and personal care stores slipped 0.7% on a month-to-month basis, they rose 4.4% from the year-ago period.

•Clothing and clothing accessories stores’ sales were flat with January, but rose 2.4% from February 2014.

•Sales at furniture and home furnishing stores declined 0.1% month-to-month, but registered a healthy 5.4% year-over-year gain.

•Sales at electronics and appliance stores fell 1.2% from January, while sales inched up 0.3% year-over-year.

•And although sales at general merchandise stores fell 1.2% month-to-month, they rose 0.4% from February 2014.

Overall, the NRF forecasts that retail industry sales will rise 4.1% this year.

This article was written by Barbara Thau from Forbes and was legally licensed through the NewsCred publisher network.

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