U.S. retail sales rose 1.1 percent in February

MARTIN CRUTSINGER

Published: Associated Press 3/13/12

February retail sales rose 1.1 percent, biggest gain in 5 months, with autos showing strength. (AP Photo/Pat Wellenbach) WASHINGTON (AP) - Americans stepped up spending on retail goods in February, evidence that a stronger job market is boosting the economy.

Consumers bought more autos, clothes and appliances. They also paid higher prices for gas.

Retail sales increased 1.1 percent last month, the Commerce Department said Tuesday. It was the biggest gain since September. The government also revised up the previous two months.

Some economists noted that the February increase and the revisions could lead to faster economic growth. It could also put pressure on Chairman Ben Bernanke and the Federal Reserve to rethink its plan to hold interest rates at record lows until at least late 2014.

The Fed is holding a one-day policy meeting Tuesday.

"We believe that the consumer is in better shape than recent downbeat commentary from Fed Chairman Bernanke," said John Ryding and Conrad DeQuadros, analysts with RDQ Economics, in a note to clients.

A separate Commerce report showed U.S. companies restocked at a faster pace in January, a sign that businesses expect stronger job growth to fuel more sales. Business stockpiles rose 0.7 percent in January, while sales increased 0.4 percent.

One factor driving the retail sales increase was a 3.3 percent rise in gasoline sales last month. It was the biggest increase in nearly a year and reflected a surge in gas prices.

Still, retail sales increased a solid 0.8 percent after excluding gas station sales.

Auto sales rose 1.6 percent. Department stores increased 1.5 percent, the largest gain since November 2010. And sales at appliance and electronics stores climbed 1 percent.

The February gain pushed total sales to a record $407.8 billion. That's 20.1 percent higher than the recession low hit in March 2009.

The increase comes after the best three months of hiring in two years. The economy has gained 734,000 jobs since December. That's lowered the unemployment rate to 8.3 percent.

"Retail sales picked up considerably in January and February," said Joshua Shapiro, chief U.S. economist at MFR Inc.

The government report reflected private data released earlier in the month. U.S. automakers reported having the best annual sales pace in four years in February, despite the surge in gas prices.

Retail merchants reported a 6.7 percent increase in sales in February compared with the same month a year ago, according to the International Council of Shopping Center's tally of 21 retailers.

An unusually mild winter had depressed sales of cold weather items during the holiday season. But that turned out to be beneficial in February because it helped to lift spending on spring merchandise.

Economists are concerned that consumers could limit spending this year if their wages continue to lag inflation. And rising gas prices could put further strains on household budgets.

The average price for a gallon of gas was $3.80 ($1 a liter) Monday. That's 30 cents more than consumers paid one month ago.

The overall economy grew at an annual rate of 3 percent in the final three months of last year. But part of that growth came from businesses rebuilding their inventories. That is expected to slow in the current January-March quarter and many economists expect slower growth from the fourth quarter pace.

For all of 2012, analysts at JPMorgan Chase forecast growth of 2.2 percent, an improvement from the 1.7 percent growth seen in 2011.

© 2012 The Associated Press. All Rights Reserved.

Lowe's Net up 13%

Lowe's reported a 13% increase in earnings for the fiscal fourth quarter and same store sales were up 3.4%.  The second largest home improvement retailer has been closing stores and reshaping its operations in an effort to increase profits and compete with rival Home Depot.   For 2012, Lowe's forecasts a total sales increase of 1% to 2% with same store sales increasing 1% to 3%.  

U.S. retail sales rise solid 0.4% in January

Is it just me or does the economy seem to be inching back?   Retail sales are rising and are significantly up from the recessionary lows.  See details at retailingtoday.com article "U.S. retail sales rise a solid 0.4% in January".  We have also noticed an increase in the number of new customers signing up for our POS reporting services as they seek to make strategic investments to drive their business.  Investment is a great sign - it means business leaders are feeling more confident in the economic outlook.  Inventory management and protecting margins are still a challenge and accurate and timely POS reporting can help with both objectives.

What is your economic outlook?

Retail sales hop 1.2%, pushing hope for the holidays plus 5 simple strategies to raise your sales

The Commerce Department reported that October '10 sales for the retail industry jumped 1.2 percent from the previous month, the most important gain since March. The rise was driven by a 5 percent spike in auto sales, which analysts said was particularly encouraging because it showed consumers were ready to tackle big-ticket purchases. Moreover, September's sales gain was revised upward coming from a 0.6 percent increase to 0.7 percent.

Still, consumers remained choosy about where they spent their dollars. Home furnishings stores and electronics retailers each suffered a 0.7 percent drop in sales. Department shop sales also declined 0.7 percent, while health-care stores dipped 0.1 percent.

Instead, consumers returned to restaurants and bars, sending sales up 0. 3 percent. On-line retailers, that have held up much better than their bricks-and-mortar counterparts, registered a 0.8 percent jump. Shoppers also bought more clothing, a 0.7 percent boost.

Excluding autos, retail sales rose a decent 0.4 percent, in spite of the mixed performance across sectors. Retailers are hoping that this momentum will fuel the all-important holiday season.

As outlined by a survey by the National Retail Federation, an industry trade group, nearly 11 percent of consumers have finished the vast majority of the holiday shopping, up from just a bit more than 9 percent a year ago. The group predicted shopper's average spending would inch around $688.87 in 2010, a 1 percent increase over a year ago.

The NRF's annual holiday survey found that more shoppers are expected to get gifts for family and friends - and also themselves. The quantity of consumers who said they planned to indulge themselves rose eight percentage points to 57 percent in 2010.

The forecasts, coupled with the brand new October data, paint an image of consumers treading carefully on their way back to the mall. Economists say that spending is unlikely to rebound, with no corresponding improvement in the employment market.

The unemployment rate remains stuck at nearly 10 %, data released from the Bureau of Labor Statistics showed hope. Mass layoffs have declined in size and frequency. And private-sector employment rose 0.3 percent during the third quarter, in comparison with last year, the 1st increase since 2008.

How may you increase add-on sales throughout the Holidays?

Below are a few solutions to boost the units per transaction, and increase the average transaction as a result.

If you want this, you should buy that - Creating feature areas within your store that have a number of major stuff you need to push for holiday, surrounded by complimentary products, helps sell more than just that one item. Use signage and have the workers talk with customers to assist them to know how these products interact.

Stuff the Stockings - I still push stocking stuffers for holiday as customers will almost always be looking for those unique, fun little goods that round out their holiday gift giving, without breaking the bank. Create an entirely stocking stuffer display and make it interactive, just like a stocking stuffer smorgasbord, to inspire customers to get one or more additional items.

Sample products - Whenever they check it out, they are going to buy it. Make sure you have products available for testing everywhere, and use signage, or have your employees interact, to get customers to attempt different products. The chance for a sale rises significantly when you can place the product inside the customer's hand.

A warm drink is the way to get them to stay - offering a warm beverage like coffee or apple cider gets customers to linger longer. It provides them time and energy to scope out much more of your store as they walk around, enjoying their beverage. And this means they could find more gifts than they planned on, resulting in increased sales.

Wrap the Cash Wrap - You've created a number of different ways inside your store to get your visitors to buy more, and the cash wrap may be the final opportunity. Make sure you have impulse items at the cash wrap, that customers can grab and go. Products under $20 usually perform best. Bonuses for items that may be sampled as well as 8-10 of these available for purchase.

So you? Exactly what are your favourite sales techniques to increase Holiday sales?

Posted by Cornelia Ortega.

visit Cornelia's blog.

Retail Sales Increasing

Despite uncertain economic reports, retailers are expected to report increased sales, according to an article in the WSJ.  Of interest to this blog, the article noted retailers have been doing a good job of managing inventories in a difficult environment.  As we work with our clients, a great deal of emphasis has been placed on forecasting sales demand and identifying out of stocks.  We have blogged a lot about how to use EDI 852 and point of sale data to manage inventory effectively, and now is a great time to get started if your organization is not fully using data to improve your business.  With instock rates in the 98% range, a vendor still has the opportunity to increase sales significantly with better inventory management.  Don't miss your opportunity to get that last 2 or 3% of sales.

Positive Signs In Retail

Nordstrom and Lowe’s both reported big increase in profits, and their CEO’s believe the economy is improving, and their sales will continue to improve.

Nordstrom's Profit More Than Doubles
Upscale department-store chain Nordstrom Inc. reported a 152 percent increase in profits during the quarter ended Jan. 30, underscoring how its strategy of expanding price points and carrying more exclusive merchandise is leading to more full-priced selling. The 108-year-old Seattle retailer missed Wall Street's profit expectations by two cents a share on higher expenses and credit card delinquencies. The company's shares fell 3.8% in after-hours trading, to $34.75.  Nordstrom maintained a cautious outlook for 2010, noting that it expects same-store sales to increase between 2% and 4%,

Lowe’s Profits Up 27%
Lowe's Cos. reported a 27% jump in fiscal fourth-quarter earnings amid signs that U.S. consumers are at least starting to consider home-renovation projects again, after more than three years of hesitation. Chief Executive Robert A. Niblock said, the home-improvement retailer's first year-over-year quarterly earnings increase in seven quarters suggests "the worst of the economic cycle is likely behind us." Lowe's expects to see a monthly same-store sales increase during the second quarter—the retailer's peak selling season.

6 Big Ideas for a new decade in retail

This blog post is worth reading http://retailprophet.com/blog/?p=550

Retail Sales Performance

The current retail environment is a subject of much discussion. The Accelerated Analytics team analyzes over 7 million units sold at over 650 retailers each week for vendors of consumer products and fashion items. For the last several weeks, we have been seeing consistent week over week growth in all three categories. Here is a summary provided to members of our retail industry community for the week ending November 14, 2009. 

Total unit sales volume as 7.29 million units sold sales week across all categories. Week over week and comp year sales performance remain very consistent with current year comp weeks showing modest growth. CPG Non Durables continue to show year over year growth while CPG durables and fashion categories continue to show year over year decline.