May sales rose as consumers focused on essentials in CNBC/NRF report

WASHINGTON – In the face of inflation and elevated gas prices, retail sales rose for the eighth consecutive month in May.

Core retail sales – excluding restaurants, auto dealers and gas stations – grew 0.39% month over month in May and rose 6.98% year over year, according to the CNBC/NRF Retail Monitor. That compared with increases of 0.34% month over month and 5.53% year over year in April.

For the first five months of the year, core sales were up 6.19%.

In contrast to the survey-based numbers collected by the Census Bureau for its monthly sales report, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions to track sales activity.

Sales at furniture and home furnishings stores lagged the broader trend: down 0.09% month over month seasonally adjusted but up 3.35% year over year unadjusted.

“As support from this year’s large tax refunds fades, consumers are prioritizing essentials and finding creative ways to stretch their household budgets,” said Matthew Shay, NRF president and CEO.  “To support them, retailers are actively engaging their supply chains and supplier networks to keep prices affordable.”

April sales were up in all but one of nine categories on a yearly basis and were up in all but two categories on a monthly basis. In addition to furniture and home furnishings store data noted above, specifics from key sectors include:

• Electronics and appliance stores were up 0.05% month over month seasonally adjusted and up 11.59% year over year unadjusted.
• Clothing and accessories stores were up 0.6% month over month seasonally adjusted and up 10.25% year over year unadjusted.
• Health and personal care stores were up 0.45% month over month seasonally adjusted and up 8.87% year over year unadjusted.
• Sporting goods, hobby, music and book stores were up 0.25% month over month seasonally adjusted and up 8.59% year over year unadjusted.
• General merchandise stores were up 0.41% month over month seasonally adjusted and up 8.28% year over year unadjusted.
• Digital products (such as electronic books and games) were up 1.22% month over month seasonally adjusted and up 7.79% year over year unadjusted.
• Grocery and beverage stores were up 0.48% month over month seasonally adjusted and up 6.01% year over year unadjusted.
• Furniture and home furnishings stores were down 0.09% month over month seasonally adjusted but up 3.35% year over year unadjusted.
• Building and garden supply stores were down 0.38% month over month seasonally adjusted and down 1.88% year over year unadjusted.