Retail Sales in June Swoon

Don Hogsett, July 16, 2007

U.S. retail sales fell by 0.9% in June, the single biggest drop in almost two years, the Commerce Department reported.

Taking some of the sting out of the number, much of the damage was done by weak auto sales, which sank by 2.9%. And lower gas prices, actually good news for consumers, fell by 1.1%, putting further downward pressure on total retail sales.

Excluding the drop in car sales, retail sales slipped a more moderate 0.4%, but even that decline was greater than the 0.2% dip that analysts had expected. And the weakness at retail was broad based, with seven out of 12 channels of distribution recording declines.

Home related channels were among the hardest hit during the month, with furniture and home furnishings stores the single biggest loser, declining by a big 3.0% and erasing a modest 0.3% gain the prior month. Sales in furniture and home furnishings stores were down by 1.8% from year-ago (June 2006) levels. Another home channel, building material and garden supply dealers, dropped off a steep 2.3%, while sales in electronics and appliance stores fell by 1.4%.

The biggest gain during the month was recorded at health and personal care stores, up 1.2%. And in more bad news for bricks and mortar, non-store retailers grew their sales by 1.2%.

Retail Sales in June
(by channel)

Source: U.S. Department of Commerce
Health & personal care 1.2%
Non-store retailers 1.2
Sport. goods, books, music 0.4
Grocery stores 0.2
Restaurants & bars 0.1
Furn. & home furn. Stores -3.0%
Car dealers -2.9
Bldg. mat./garden supplies -2.3
Electronics & appliances -1.4
Clothing & accessories -1.4
Gas stations -1.1
Dept. stores -1.0

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!