Michael McNamara, Vice President, Research and Analysis for SpendingPulse, observes, “Overall, September continued the pattern we have observed of consumers spending selectively and leaning towards non-discretionary rather than discretionary items. Variables to keep in mind when looking at spending across the country are regional extremes putting a damper on some sectors while helping others. The strong performance of the financial markets, which often helps the higher-end sectors, did not appear to do so in September. The month benefited from late back-to-school shopping, with some apparel shopping pushed back from August to September as parents postpone fall and winter purchases until the cooler weather arrives.”
For the second consecutive month, Total U.S. Apparel Sales posted a year-over-year gain, up 3.8%, following the 2.6% gain in August. This was the year’s second largest year-over-year gain in the sector, which has now posted increases in 6 out of 9 months year-to-date. As it did in August, the Children’s and Family segments drove the growth in this category, posting year-over-year increases of 2.3% and 7.9% respectively. Footwear was up 0.7%, slightly more modest than August’s 0.9% increase. Similarly to August, the Men’s and Women’s categories were the only ones that lost ground, with Women’s decreasing 0.2%, a smaller decline than the August drop, and Men’s Apparel was down 3.4% year-over-year.
The Consumer Electronics and Appliances category recorded its fourth consecutive month of year-over-year gains, a run that started in June after a brief respite in May. September’s increase was 4.3% year-over-year, surpassing the 3.5% increase we saw in August. Most of the growth in September occurred in the $500 to $1000 price range as well as the under $25 price range. The Consumer Electronics sub-category carried much of this sector’s growth, up 4.7%, while the Appliance category took a step back from August’s 9.4% increase, up 2.4% year-over-year in September.
SpendingPulse’s Luxury ex-Jewelry Index, which includes high-end sales in the restaurant, food stores, department store and general apparel categories, fell by 5.4% year-over-year in September. This was the sector’s second consecutive month of year-over-year decreases. September marks the end of easy year-over-year comparisons, which along with the current difficult economic environment, could account for weakness in this category, despite the generally better performance of the financial markets in September.
eCommerce sales posted a year-over-year growth rate slightly higher than that of August, up 7.8%, with the Apparel sub-category leading the way with an increase of 13.4%, and all sub-categories except jewelry being comfortably in positive territory. Similarly to August, the entire channel was helped in September by double digit growth in a number of subsectors, namely Total Apparel, Children’s Apparel and Family Apparel. eCommerce footwear sales were up a robust 9% year-over-year and Electronics eCommerce sales were up a solid 7.6%. Jewelry dipped 5.9%, September being the only month this year to record negative growth in this sub-category of eCommerce.
