On a positive note, eCommerce, a sector that has posted gains throughout 2010, regained double digit growth in July, increasing 10.9% on a year-over-year basis, in contrast to June, when for the first time since November 2009 it had dipped into single digits. In terms of eCommerce sub-categories, Apparel eCommerce increased in double digits for the eighth consecutive month, up by 13.7% in July on a year-over-year basis, but smaller than the growth rate of 18.6% posted in June. Almost all of eCommerce sub-categories posted year-over-year growth, the exception being Department Stores, which was down by 1.9% following seven months of double-digit growth. Family Apparel was up a very robust 22.2% year over year.
The SpendingPulse Luxury Index encompasses high-end sales in restaurant, food stores, department stores, and high-end general apparel retailers. In July, the category saw a small gain, growing 0.2% year-over-year. Although no longer in negative territory, this essentially flat performance is a notable contrast to the double-digit growth the sector enjoyed from February through April 2010, or even the high single-digit growth of May 2010, compared to 2009.
In July the Electronics and Appliances category posted its second month of year-over-year gains, growing by 1%, slightly smaller than June’s 1.7% increase. Electronics sales were up by 0.8% in July, probably helped by new product launches, while Appliance sales were up 1.8%. While some of the other housing-related sectors are down, the growth in Appliance sales is a positive sign.
Total apparel sales decreased by 1.1% in July, following June’s 3.3% year-over-year gain, with most of the category’s sub-sectors posting declines. Notably, Family Apparel was the only sub-category that posted increases, growing 3.4 %, compared to the strong June growth of 7.9%. Women’s Apparel, Children’s Apparel and Footwear all posted declines of 1% to 4%, with Children’s posting its first decline in 10 consecutive months and Men’s Apparel posting a sharp decline of 16.3%.
Impact of Oil Spill Disaster in the Gulf
SpendingPulse also examined a few specific industry sectors including the hotels and restaurants in specific markets along the Gulf including Biloxi, MS, Gulf Shores, AL, Pensacola, FL, Ft Walton Beach, FL and Panama City, FL.
Overall the spill seems to have had a severe impact on the local hotel sector while the local restaurant sector has not been hit as hard. Also the markets varied somewhat as Biloxi MS seemed to fare better, possibly because of the casino business in that market while areas that are more dependent on beach tourism were much harder hit.
Pre-oil spill hotel and lodging sales were showing year-over-year increases of 12.9%, while post spill, the sector showed year-over-year declines of 25.5%.
The restaurant sector demonstrated more resilience with the full service category generally flat compared to 2009, while the limited service sector posted growth.
While the economic impact on these local markets was in some cases severe, the spill does not seem to have had a noticeable impact on the aggregate national retail sales results.
