Retail Softened in August

By Staff -- Home Textiles Today, 9/18/2006 12:00:00 AM

Washington —

Sales turned soft during August, limping ahead a skimpy 0.2%, hitting the wall after a much larger 1.4% increase the month before, the Commerce Department reported.

A big part of the month's weakness was a slowdown in car sales, which inched up just 0.5%, after a big 4.3% increase in July. But sales were off broadly; not a single channel managed a gain of even 1.0%. The month's big winner was sporting goods, books and music stores, where sales improved by 0.8%. In second place, up 0.7%, were restaurants and bars, where consumers presumably fretted about rising interest rates and a weakening jobs outlook. Third were health and personal care stores, up 0.5%.

Home-related channels were among the month's weakest performers. Finishing at the bottom were electronics and appliances retailers and building material and garden supply outlets, each up just 0.1%. Furniture and home furnishings stores did even worse, declining by 0.3%.

The biggest loser was gas stations, where sales dipped 1.0% as oil prices eased. Clothing and accessories stores fell 0.3%, department stores dipped 0.2%.

Retail Sales in August
(by channel)