July retail sales bounce back

AUGUST 11, 2006 - Washington, D.C. -- The summer heat and early back to school promotions brought consumers back to stores last month, according to the National Retail Federation (NRF), which reported retail industry sales rose 6.2 percent unadjusted over last year and increased by 0.6 percent seasonally adjusted from June. Figures exclude automobiles, gas stations and restaurants."The intense summer heat combined with back-to-school promotions brought shoppers back into the stores," said NRF chief economist Rosalind Wells, in a media release issued Friday.

"This shows that it is impossible to count the consumer out just because of high prices at the pump."Retail sales figures released by the U.S. Commerce Department for July show total retail sales (which include non-general merchandise categories like autos, gas stations and restaurants) rose 1.4 percent, seasonally adjusted, from June and were up 3.9 percent unadjusted compared to 2005.Sales were strong across most retail categories, though stores promoting back-to-school exceeded expectations, NRF said. Apparel saw strong gains with sales in clothing and clothing accessories stores up 0.7 percent over June and 6.4 percent year-over-year.

Health and personal care stores were up 0.6 percent over June and 8.4 percent versus 2005 figures.Another hot back-to-school category was electronics, which expanded to include MP3 players and mobile phones. Sales in the category increased 1.9 percent from the previous month and by 7.6 percent over July 2005.Other strong retail categories included building materials and garden equipment and supplies dealers, up 1.8 percent from June and 10.8 percent unadjusted over last year. Furniture and home furnishing sales increased by 0.5 percent from June and saw an 8.8 percent bump from last year.