Dive Brief:
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U.S. Department of Commerce Thursday reported retail and food-service had a 0.4% decline in overall retail sales from December to January, the weakest month-over-month January retail posting since 2007 and a bigger drop than expected.
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Apparel sales and electronics were especially dim areas, with clothing and accessories sales down decreased 0.9% but up 1.2% unadjusted year-over-year. Although electronics retailers had a .4% gain over December, year-over-year electronics sales fell 4.7%, making the January bump an almost worthless anomaly.
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But overall retail sales in January improved by 2.6% from 2013's figures, and November-to-January holiday shopping posted a 3.4% rise over the same period in 2012-2013.
Dive Insight:
As with other monthly and quarterly economic measures these days, retail sales reports are giving mixed messages. One of the reasons that Wall Street, despite missed expectations, didn’t much mind the dim retail news for January has to be the weather, which is making everyone sick of everything and is keeping people away from stores (but possibly buying more winter clothes). Everyone knows the economy could be better, but maybe everyone is also starting to believe that, while it might be slow, it is continuing to recover. Keep in mind that some financial observers do think it’s a bad sign. But analysts will have something more to say, one way or the other, once the snow is gone.
Electronics retailers, though, do get to have their own pity party. This was just another story that electronics sales seem doomed no matter the weather.