August sees a strong boost in retail sales
After a strong summer, the month of August saw an increase in retail sales led by solid back-to-school shopping. With the recently released numbers, retailers are becoming more confident about the next few months and expect to see a rise in sales during the holiday shopping season. August's totals were better than expected, and many industry experts believe this could be an indication of improving economic conditions along with growing optimism of both shoppers and companies.
Better-than-expected sales
A study by Thomson Reuters found that for the month of August, same-store sales increased by 3.6 percent for nearly all U.S. retailers, reports Reuters. It was expected that the amount would only rise by 2 percent. This significant rise could be due to strong sales for back-to-school items and merchandise, which is normally the second largest shopping season, after Thanksgiving and the holidays. However, retailers still have some challenges to face, as the Commerce Department released research that found second quarter consumer spending was still below the levels of the first quarter.
In any case, industry experts anticipate that the solid spending numbers will remain steady for the next few months, including holiday shopping. The recent totals, coupled with the successful back-to-school season, will give retailers the confidence needed to develop and plan promotions to appeal to consumers, states the source.
Best sales growth in five months
According to Bloomberg Businessweek, several large retailers saw significant increases in the amount of sales throughout August. Research by the International Council of Shopping Centers found that totals rose 6 percent during the month, representing the strongest growth since March of this year. On the other hand, a study by a private research firm revealed that consumer confidence is low due to worries about economic conditions and unemployment. Despite shoppers' concerns, industry experts state that their retail patterns are pointing to an increase in optimism. This could very well result in this year's holiday sales figures at least meeting and possibly surpassing last year's totals, states the source.
"It shows some resilience among shoppers," said Ken Perkins, president of research firm Retail Metrics. "Let's face it. There are a whole series of economic headwinds that they are fighting against. The results show that the consumer isn't dead."
