May retail sales figures could show strong improvement

Retail sales have been fluctuating since the beginning of the year, and the nation's merchants are ready for some welcome news. Something positive could be on the horizon, as May's sales numbers will be released this week, and initial reports are showing solid growth.

MarketWatch writes that a winter filled with lower-than-normal temperatures and increasing payroll tax rates contributed to a less-than-stellar first quarter for American companies. Research from Retail Metrics found that many large brands reported profits below their 12-year average. During the first three months of 2013, first-quarter profits for big name retailers grew 5 percent, but this figure did not meet the 7.8 percent average seen over the past decade, the source notes.

However, warmer weather and additional sales could be just what is needed to draw in customers, and May could turn out to be successful for merchants, the source explains.

The Wall Street Journal reports that initial figures from Redbook Research indicate that sales increased 0.6 percent last month from April. When compared to the same time a year ago, the figure rises to 2.7 percent.

US retail industry making strong strides toward recovery

Leading up to and during the economic downturn, American consumers severely curbed their spending in order to cope with the recession. This in turn impacted the nation's retailers, as many saw their revenues and customer bases drop. However, as conditions continue to improve, merchants are making a strong comeback in many ways.

Just-Style writes that one solid sector of retail that is seeing immense growth is the apparel market. American clothing companies have contributed to the expansion of global apparel industry, which is also being helped by the western European and Canadian markets. The source points out that domestic apparel retailers have made alterations to their sales strategies to deal with an emergence of international brands cropping up within the U.S. These changes include enhancing marketing efforts, streamlining operations with retail management software and many other methods, the source notes.

While the official figures have yet to be released, the Wall Street Journal reports that recent statistics from Redbook Research found that retail sales throughout the country grew 0.6 percent from the previous month during the first four weeks of May. As for year-over-year totals, sales increased 2.7 percent, the source explains.

US consumer confidence rises while spending level falls

When taking a look at the current landscape of consumer sentiment across the United States, retailers may be a bit confused – recent reports have shown that consumers are increasingly confident in the nation's economy and their own financial conditions, but at the same time, they are curbing their retail spending.

Bloomberg reports that according to the latest Thomson Reuters/University of Michigan consumer sentiment index, the figure for May rose to its highest level in six years, coming in at 84.5. This is also a strong increase from April, when the index stood at 76.4. Analysts speculate that there are several factors which contributing to the boost in confidence, some of which include an improving housing market and solid stock prices, the news source explains.

On the other hand, this optimism does not seem to be fully translating into higher sales for the country's merchants. The Los Angeles Times states that the most recent data from the Commerce Department revealed that Americans reduced their spending in April by 0.2 percent. Economists said that a lack of growth in personal income was mainly to blame for the drop, as shoppers had less money to spend on discretionary items, the source reports.

Bad news for UK retailers in latest sales reports

The past few months have not been encouraging for retailers in the United Kingdom, as sales have been less-than-stellar. The most recent data shows that sales dropped at the fastest pace in more than a year, resulting in a dismal outlook for British merchants.

PressTV reports that statistics from the Confederation of British Industry (CBI) revealed that retail sales dropped to -11 this month from -1 in April. This was much lower than analysts' expectations of a positive balance of 3, the source notes. There were several reasons given for the sharp decline, including lingering consumer hesitance from the economic recession.

"Retail sales growth has weakened since the start of the year as households continue to feel the pinch, with wages failing to keep pace with the cost of living," said Barry Williams, chair of the CBI Distributive Trades Survey Panel.

Separate research found that in 2012, shoppers in the U.K. held back on using cash for retail purchases and instead swiped their debit and credit cards both in stores and online, Financial Times reports. A study from the British Retail Consortium found that cash declined 10 percent year-over-year. This could be key for merchants looking to boost their sales. Offering point of sales solutions that provide fast and easy transactions could accommodate customers who prefer to pay with cards.

Opinions vary on the state of the US retail industry

The economic recession hit many sectors throughout the country hard, but perhaps none more so than the retail industry. Merchants saw their sales drop, which had an impact on the nation's overall conditions. Fortunately, things are looking up for the sector, although there are several opinions on exactly how strong the industry currently is.

In an article for the San Antonio Business Journal, Tricia Lynn Silva writes that many of the most recent opinions from retail experts come from April's sales. There are several reports that measured last month's amount, with one being statistics from the International Council of Shopping Centers (ICSC) which state that retail sales rose 2.7 percent year-over-year. On the other hand, the National Retail Federation reports that sales increased 4.6 percent Between last month and April 2012. 

While both percentages are positive, the one from ICSC indicates that April was an "o.k. month," and the NRF findings are more positive strong, Silva writes. However, the overall opinions of retail industry experts are encouraging, the author explains, and many believe that the retail sector is poised for solid growth over the coming months.

Ecommerce sales offer bright spot for dismal UK retail industry

Consumers in the United Kingdom have been hesitant to fully open their wallets in recent months, as a slow economic recovery coupled with cold weather have impacted the nation and its residents. This has taken a significant toll on retail sales, but despite a drop in April, shoppers are increasingly taking to the web to browse for and buy products from merchants.

According to the latest data from the British Retail Consortium, April saw a 2.2 percent year-over-year drop in retail sales, The Guardian reports. Analysts state that this decrease was mainly due to prolonged winter weather, as the country saw lower-than-normal temperatures throughout the month. This kept many consumers at home and stalled their purchases for summer-related items, the news source notes.

However, ecommerce was a strong point for U.K. retailers last month, explains Internet Retailer. Data from the Interactive Media Retail Group and Capgemini shows that online sales grew 16 percent year-over-year in April. To capture additional sales and attract customers as the weather warms up, merchants can incorporate point of sale systems that process both purchase made on the internet and in brick-and-mortar locations. 

US retail sales steadily picking up as summer approaches

As temperatures rise and the summer vacation season gets closer, American consumers are feeling more confident in their own financial conditions as well as the nation's economy. This optimism is visible in recent retail sales, which increased between April and March, and are expected to keep growing over the next few months.

The Associated Press notes that the latest statistics from the International Council of Shopping Centers revealed that April sales among retailers that have been open for at least one year jumped 4.7 percent when compared to the same time a year prior. These merchants, as well as big-name brands such as Wal-mart, Target and Macy's, reported strong sales last month, which most analysts believe is fueled by the nation's improving employment sector and rises in worker wages for many Americans, the source explains.

These positive numbers come after a less-than-stellar March, in which retail sales fell 0.4 percent from the previous month, the AP reports in a separate article. Data from the Commerce Department showed that the decline followed a gain of 1 percent in February. This led many analysts to believe that consumers were once again reining in their spending due to payroll tax increases and sluggish economic recovery. However, April's numbers are giving retailers hope that a solid summer season is on the horizon.

Changes in weather having impact on American retail sales

Chilly weather is still lingering for many regions across the United States, and this is affecting retail sales. Despite the upcoming summer season, the remaining colder temperatures are changing the way that consumers are buying items from merchants. However, businesses are optimistic that their merchandise for warmer months will soon be purchased as the weeks go on.

MarketWatch reports that data from Weather Trends International revealed that last month was the coldest April on record for the past 13 years. Snow and lower-than-normal temperatures kept many Americans inside and curbed their spending on summer-related items. This in turn forced many retailers to re-adjust their first quarter profit predictions. Because of this, analysts now expect that retail sales during April will only increase 3.6 percent from the previous month compared to the initial forecast of 4 percent, according to Retail Metrics.

For several regions, however, warmer weather is here to stay, and retail sales are boosted because of the nicer temperatures. In a separate article, MarketWatch reports that merchants in California are benefiting from the above average conditions in the state during the past month. Businesses have stated that purchases for summer-related products have jumped, and it has provided a "bright spot" for their sales totals, the source notes.

Canada sees strong monthly growth in retail sales

It's been an ongoing struggle over the past few years, but it seems as though Canada is on a solid track to fully recover from the negative effects of the global economic recession. One indicator of strong improvement within Canada has been its recent retail sales volumes.

According to the latest data from Statistics Canada, retail sales throughout the country increased by 0.8 percent in February from the previous month. This represents an approximate total of $39.5 billion in transactions. The research revealed that sales jumped in eight of the nation's 10 provinces, including Alberta, Manitoba, British Columbia, Ontario and Quebec. These findings highlight the fact that Canadian consumers are becoming more confident in the economy as well as their own financial conditions.

In January, retail sales also increased, following several months of declines at the end of 2012. CBC News reports that sales volumes rose 1 percent from December, beating analysts expectations of 0.9 percent. If these figures continue to improve in Canada, retailers can adjust to boosts in consumers spending by incorporating retail POS software into their operations.

Has spring really sprung for retailers?

Normally during this time of the year, retailers are busy stocking their shelves with merchandise to help consumers prepare for the upcoming spring and summer seasons. Outdoor items, bathing suits, beach gear – these are all things merchants offer around this time. However, prolonged cold weather both in the United States and Europe is putting sales on hold for many businesses.

Retailers in South Dakota, which is currently experiencing colder-than-normal temperatures, are struggling to sell the summer-themed items that line their shelves, reports Keloland.com. Some businesses have removed their merchandise for warmer months and put back the winter products, which has made many customers happy. However, some companies still insist on putting out items for the upcoming spring and summer seasons in the hope that the frigid weather will pass soon, the source reports.

Regional retailers in the United States are not the only ones currently experiencing this below-normal temperature challenge. According to Bloomberg, merchants in the United Kingdom are also seeing sales decline due to chilly conditions. Consumers held off on buying summer clothing and related items as cold weather gripped the country in March, causing sales totals to fall 0.7 percent from the previous month.