January furniture, home furnishings store sales up 5.5%

U.S. retail and food service sales fell 0.8% in January from the month before, although a significant part of the drop was due to the 9.3% decrease in gas station sales.

 

 

(Editor: Leona)

 

U.S. retail and food service sales fell 0.8% in January from the month before, although a significant part of the drop was due to the 9.3% decrease in gas station sales.

 

Sales at furniture and home furnishings stores were $8.59 billion in January, down 0.7% from December but up 5.5% from a revised $8.12 billion in January 2014, the U.S. Department of Commerce reported.

 

The 0.7% decrease over December at home furnishings stores (and also department stores) was the largest decreases outside of gas stations and clothing and accessories stores, the latter posting a 0.8% dip.

 

Among the sectors with sales increases in January over the previous month were electronics and appliance stores, with a 0.3% gain and building and garden supplies dealers with a 0.6% gain. Food services and drinking places posted the greatest January-over-December gain at 0.8%.

 

With the steep drop in fuel prices, gas station sales were down 23.5% from January a year ago, according to the report.

 

In a Reuters report, a TD Securities analyst said, “Overall, the tone of this report was disappointing as it points to a weak start to spending activity this year, despite the significant boost to disposable income from lower gasoline prices.”

 

Meanwhile, the National Retail Federation released a new forecast of U.S. retail sales for this year, with expected growth of 4.1% topping the 3.5% growth in 2014. The figure excludes automobiles, gas stations and restaurants. It would be the industry’s best year since 2011, when sales rose 5.1%.

 

Non-store retailing is expected to grow between 7% and 10% this year, the organization said.

 

“Already facing far fewer obstacles than this time last year in terms of growth opportunities, retailers are optimistic about the potential that exists for healthy growth in retail sales and consumer engagement in 2015,” said NRF President and CEO Matthew Shay.

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