Retail stores see struggles ahead of Black Friday
Restaurants and bars enjoyed a 1.6 percent bump from September spending, including the effect of inflation. And home improvement and furniture stores continue to perform strongly nationally, getting a continuing lift from the COVID-19 pandemic that had many people reinvesting in their residential quarters, whether for remote working or for more enjoyment from their outdoor spaces.
Despite inflation finally flattening on the eve of the holidays, several retail categories saw declining receipts in October according to new federal estimates, though consumers continue to splurge on dining out, suggesting many are seeing income keep pace with higher prices.
Overall retail spending rose 1.3 percent between September and October, according to the U.S. Census Bureau’s monthly estimates released Wednesday morning, with at least some of the increase driven by higher prices.
But department stores, sports equipment stores and retailers focused on appliances and electronics saw aggregate sales drop in October, census surveys suggested, while apparel shops saw sales stay flat.
The Census Bureau does not break out sales by region.
A separate Affinity Solutions index of credit card transactions for Connecticut residents remained elevated in October from a year earlier, as pegged to spending in 2019 prior to the COVID-19 pandemic.
Restaurants and bars enjoyed a 1.6 percent bump from September spending, including the effect of inflation.
Home improvement and furniture stores continue to perform strongly nationally, getting a continuing lift from the COVID-19 pandemic that had many people reinvesting in their residential quarters, whether for remote working or for more enjoyment from their outdoor spaces.
At Home Depot, which has 30 locations in Connecticut, samestore sales were up 4.5 percent nationally in the third quarter from a year earlier. Home Depot set record sales as well for Halloween merchandise — a strong signal that many household budgets have plenty of wiggle room for extra spending despite higher inflation.
“We think our customer is still healthy — I mean, our customer tends to have a good job, growing wages, strong balance sheets. They own their home and have seen increased home equity,” said Home Depot CEO Ted Decker, speaking Tuesday on a conference call with investment analysts. “It is a unique environment with lots of crosscurrents of inflation, rising interest rates, et cetera; but given all that, our customer has remained resilient and engaged.”