Sept. Electronics Store Sales Jumped 17.3% Year Over Year, Says NRF
Rising inflation and sluggish supply chains “remain a concern” even after consumer spending tipped to retail in September, said the National Retail Federation Friday. September spending “might have been higher if not for shortages of items consumers are eager to purchase,” said NRF CEO Matthew Shay.
NRF’s calculation of core retail sales -- excluding car dealers, gas stations and restaurants -- showed September was up 0.7% seasonally adjusted from August; September was up 11% unadjusted year on year. That compared with increases of 2.4% month over month and 12.2% year on year in August. NRF Chief Economist Jack Kleinhenz called the September report “very promising for a strong finish for the year.”
Worries over the COVID-19 delta variant “pushed consumer spending toward merchandise rather than services like dining, entertainment or travel despite supply chain disruptions and inflation,” NRF said. Its most recent 2021 forecast calls for sales growth of 10.5%-13.5% to $4.44 trillion-$4.56 trillion. NRF plans to report its holiday forecast Oct. 27.
September sales rose in all but two categories on a monthly basis, and up across the board year over year, said NRF. Electronics and appliance store sales dipped 0.9 percent month over month seasonally adjusted; they were up 17.3% unadjusted year over year.
The reopening of the economy “was interrupted by COVID-19,” said Kleinhenz, “and consumer spending other than retail hit a speed bump toward the end of summer,” when retail sales didn’t reflect as much of a shift away from goods to services as expected. “That was a plus for retail” with consumers having money to spend due to wage and job gains and household savings built up during the pandemic, he said. Some back-to-school spending may have spilled over from August into September from school districts that delayed opening until after Labor Day, he said.
The retail industry had record imports this year, despite “persistent challenges” due to COVID-19, supply chains and labor shortages, said Shay, expressing confidence in a “healthy and happy holiday season.” He credited retailers and their partners for “resilience and ingenuity in getting the workforce, goods and systems in place to serve their customers and the communities where they operate.” NRF “welcomed the chance to collaborate with the Biden administration and industry partners this week to address supply chain and labor force issues,” he said.