Redbook Research reports each week on the status of retail sales. Usually these weekly reports do not really matter but this week may be an exception even if these are not exactly market-moving data. This week’s report shows that same-store sales increased 2.7% for the third week of May following a 3.7% gain in the prior week.
The figure that will stand out the most is that same-store sales so far in May are up 3.0% over May 2011 on a month-to-date basis. These same-store sales are down about 0.9% sequentially if you compare these to April.
Redbook said that sales were slower in the last week and the culprit is shoppers taking a break after Mother’s Day and delayed shopping pending Memorial Day promotions. The report also noted that cooler weather in some regions dampened demand for apparel, lawn and garden equipment and sporting goods at department stores and discount stores.
Redbook now expects year-over-year same-store sales growth of 2.8% for May, which actually translates to a 1.1% sequentially over the month of April.
The bad news is obviously a decline sequentially and an annual growth that is considered anemic on a system-wide basis. The good news here is that this is still showing growth from a year ago.
JON C. OGG