Washington, DC, June 15--While unseasonably cool weather affected sales of some spring merchandise, it didn't alter sales of home goods, which continued to bring consumers to stores last month.
According to the National Retail Federation (NRF), retail industry sales for May (which exclude automobiles, gas stations, and restaurants) rose 5.6 percent unadjusted over last year and increased 0.2 percent seasonally adjusted from April. Additionally, April sales, which were initially estimated to have risen 4.4 percent over last year, were revised upward to 4.8 percent. The gains were stronger than NRF had been anticipating.
The National Retail Federation continues to expect retail industry sales to increase 5.0 percent in the second quarter and 4.8 percent this year over 2004.
"Despite initial concerns that rising interest rates would negatively affect sales of home merchandise, consumers seem to be unfazed," said NRF chief economist Rosalind Wells. "Sales of home goods, including furniture and building supplies, continued to be a strength for retailers last month."
May 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) declined 0.5 percent seasonally adjusted from April and increased 6.4 percent unadjusted year-over-year. A large part of the month-to-month weakness was in categories that the NRF does not include in retail industry sales--automotive sales declined 1.6 percent from April and lower gas prices reduced gasoline sales by 1.6 percent from last month.
Last month's sales leaders came from the home categories, as sales at building materials and garden equipment and supplies dealers rose 0.5 percent from the previous month and soared 11.0 percent unadjusted over last year. Furniture and home furnishings sales also continued to rise, increasing 0.4 percent from April and rising 6.7 percent unadjusted over last May.
Strength was also seen at health and personal care stores, which rose 0.8 percent from April and 7.3 percent over last year, and sporting goods, book, hobby, and music stores, which climbed 0.5 percent from the prior month and 4.0 percent over last May. Unseasonably cool weather seemed to affect sales at clothing and clothing accessories stores, which saw sales slip 0.8 percent from April, though sales continued to rise 4.2 percent over last May.
