NRF: Retailers See Moderate Retail Sales Growth in

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NRF: Retailers See Moderate Retail Sales Growth in
Washington, DC, November 15, 2006--While a major drop in gasoline prices hurt receipts at gas stations across the country, most of the retail industry continued to experience subdued growth as consumers recharge for the holiday season. According to the National Retail Federation (NRF), retail industry sales for October (which exclude automobiles, gas stations, and restaurants) rose 4.3 percent unadjusted over last year and increased 0.3 percent seasonally adjusted from September. "Although gas prices have declined, the slow housing market appears to be hurting consumer spending power as home improvement and home furnishing categories begin to struggle," said NRF Chief Economist Rosalind Wells. “With the holiday season just around the corner, retailers hope consumers are ready to bounce back next month." October retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) dropped 0.2 percent seasonally adjusted from September and increased 4.5 percent unadjusted year-over-year. Although October sales were not as robust as previous months, there were still some bright spots in retail sales that bode well for the upcoming holiday season. Sales for clothing and clothing accessory stores in October rose 6.7 percent over last year. Adjusted month-to-month sales in the apparel category rose 0.1 percent. Sporting goods, hobby, book and music stores saw an increase of 5.7 percent from the same period a year ago and dipped a mere 0.2 percent adjusted from September. Health and personal care stores increased an impressive 9.0 percent year-over-year and rose 1.3 percent seasonally adjusted from September. The housing market is having its predicted impact on home-related categories this month. Furniture and home furnishings stores sales decreased 0.7 percent adjusted from September while increasing 4.4 percent year-over-year. Sales at building material and garden equipment and supplies dealers dropped 0.3 percent adjusted from the previous month and rose 3.9 percent from October 2005. NRF continues to forecast that holiday sales will increase 5.0 percent this year to $457.4 billion.