January Sales Drop Despite Strong December

Shoppers spent less in January than they did during the busy holiday months but retail sales still had strong sales year over year according to the CNBC/NRF Retail Monitor.

“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season,” says Matthew Shay, NRF president and CEO. “Despite the monthly decline, the year-over-year increases reflect overall consumer strength as a strong job market and wage gains above the rate of inflation continue to support spending. We’re seeing a ‘choiceful’ and value-conscious consumer who is rotating spending across goods and services and essentials and non-essentials, boosting some sectors while causing challenges in others.”

Total retail sales, excluding automobiles and gasoline, were down 1.07% seasonally adjusted month over month but up 5.44% unadjusted year over year in January, according to the Retail Monitor.

January sales were up in seven out of nine categories on a yearly basis, led by online sales, health and personal care stores, and clothing and accessories stores. Sales were up in three categories on a monthly basis. Specifics from key sectors include:

• Online and other non-store sales were up 0.44% month over month seasonally adjusted and up 30.49% year over year unadjusted.
• Clothing and accessories stores were down 2.96% month over month seasonally adjusted but up 7.67% year over year unadjusted.
• General merchandise stores were down 2.43% month over month seasonally adjusted but up 7.53% year over year unadjusted.
• Building and garden supply stores were up 0.27% month over month seasonally adjusted but down 0.99% year over year unadjusted.