JCWG
  • Home
  • About Us
    • Our Story
    • Team
    • Services
    • Sectors
  • Blog
  • Library
  • National Retail Bulletin
    • Canadian NRB
    • US NRB
  • Contact

UNITED STATES

NATIONAL RETAIL BULLETIN

US Retail Sales Growth Lower than Inflation in February

Release date: March 15, 2023

  • Twitter
  • Instagram
  • LinkedIn

US retail sales in February experienced a growth 5.6% YOY for All Stores and All stores Less Automotive, Food, Pharmacies also up 8.5% YOY. With years prior to the pandemic as a baseline, this growth is impressive. However, when inflation in the US reached 6% in February, the increase in retail sales is more than meets the eye.

There are two winners in February 2023 US retail as we continue through a period of high inflation and recession: Experiences and discounts.

  • Experiences are experiencing the growing impact of the pandemic limiting travel, and Millennials/Gen Z becoming a larger percentage of spending. These generations are much more willing to spend on experiences than previous generations, and when this is coupled with the fact that for over a year they were not able to travel or go to concerts, this pent up demand continues to perform. With this being considered, it is not surprising to see Food Services and Drinking Places grew 15.1% YOY since people eat out more when travelling. Outside of US retail sales reports, spending on airlines and lodging increased by 15.6% and 42.7% YOY respectively, according to Mastercard SpendingPulse.
  • In periods of recession, consumers are looking to save money wherever possible, but specifically with food. Food and Beverage Stores and Grocery Stores saw a modest growth of 5.6% YOY and 5.8% YOY respectively (below the rate of inflation), coupled with an increase in 10.7% YOY in General Merchandise Stores. JCWG thinks this proves the likes of Costco, Walmart, etc. are capturing the Food and Beverage demand better than ever before.

When comparing revenues to January 2023, nearly all categories of US retail sales are down. The only categories that saw continued growth over January are:

  • Department Stores (Excluding Leased Departments): 0.9% MOM
  • Clothing and Accessories Stores: 9.2% MOM

These two categories saw modest growth (3.5% and 7.9% YOY respectively) in January, a month typically slow for retail. Likely in part, due to customers redeeming gift cards they have been sitting on with pandemic restrictions on the category as well as continued moves back to office. 

February is following 2023’s trend of retail sales behaviours during a recession, and on the heels of continued reactions to COVID-19 lockdowns. With US retail sales now growing at a lower rate than the inflation rate, some questions that JCWG has include:

  • When inflation starts to ease, will customers continue shopping for grocery at large, general merchandise stores?
  • Have retailers who lost consumers due to the recession lost them for good? How can they be retrieved?
  • How are YOU preparing your retail business for better customer experience?

For support in improving your customer experience, reach out to JCWG. For more inspiration, join us March 29, 2023 as the JCWG team is hosting a virtual tourreviewing our recent trip with our international partners in the Ebeltoft Group to Germany, which included EuroShop 2023 and store tours in Düsseldorf and Cologne, sign up here!

We have also released this year’s highly anticipated “Retail Innovations 18” book, please visit the download page here.

US Retail Sales by Product Category, Same Month Comparison

Sales for the Month of FebruaryFeb-23Feb-22YOY
All Stores611,441579,1395.58%
Motor Vehicle and Parts Dealers117,334116,9910.29%
Gasoline Stations48,57149,575-2.03%
All Stores Less Automotive445,536412,5737.99%
Food and Beverage Stores73,15969,3155.55%
Grocery Stores65,93962,3395.77%
Health and Personal Care Stores32,32829,9477.95%
All Stores Less Automotive, Food, Pharmacies340,049313,3118.53%
Building Material and Garden Equipment Stores33,75433,5290.67%
General Merchandise Stores62,65056,57510.74%
Department Stores (Excluding Leased Departments)9,2268,9832.71%
Clothing and Accessories Stores21,34920,5094.10%
Furniture, Home Furnishings, Electronics and Appliance Stores17,00617,111-0.61%
Furniture and Home Furnishings Stores10,72310,6850.36%
Electronics and Appliance Stores6,2836,426-2.23%
Sporting Goods, Hobby, Musical Instrument, and Book Stores7,3837,1423.37%
Miscellaneous Store Retailers13,37312,8364.18%
Nonstore Retailers100,79092,8708.53%
Food Services and Drinking Places83,74472,73915.13%

US Retail Sales by Store Category, Year to Date Comparison

Year-to-Date Sales Ending FebruaryFeb-23Feb-22YTD
All Stores1,246,9571,167,1006.84%
Motor Vehicle and Parts Dealers235,456230,5382.13%
Gasoline Stations100,18798,6731.53%
All Stores Less Automotive911,314837,8898.76%
Food and Beverage Stores151,432144,2994.94%
Grocery Stores137,071130,4385.09%
Health and Personal Care Stores66,57462,1717.08%
All Stores Less Automotive, Food, Pharmacies693,308631,4199.80%
Building Material and Garden Equipment Stores68,81767,3002.25%
General Merchandise Stores127,509117,4598.56%
Department Stores (Excluding Leased Departments)18,37217,7823.32%
Clothing and Accessories Stores40,89938,6225.90%
Furniture, Home Furnishings, Electronics and Appliance Stores34,76234,2521.49%
Furniture and Home Furnishings Stores21,84621,1083.50%
Electronics and Appliance Stores12,91613,144-1.73%
Sporting Goods, Hobby, Musical Instrument, and Book Stores15,24714,4125.79%
Miscellaneous Store Retailers27,23425,3327.51%
Nonstore Retailers209,028191,4889.16%
Food Services and Drinking Places169,812142,55419.12%

US Consumer Confidence Index (2010 = 100)

Join the discussion on this release here.


past national retail bulletins


  • US NRB February 2023

    March 15, 2023

  • US NRB January 2023

    February 15, 2023

  • US NRB December 2022

    January 18, 2023

  • US NRB November 2022

    December 15, 2022

  • US NRB October 2022

    November 16, 2022

  • US NRB September 2022

    October 14, 2022

  • US NRB August 2022

    September 15, 2022

  • US NRB July 2022

    August 17, 2022

  • US NRB June 2022

    July 15, 2022

  • US NRB May 2022

    June 15, 2022

  • US NRB April 2022

    May 17, 2022

  • US NRB March 2022

    April 14, 2022
Browse older…

Subscribe to our mailing list

Subscribe to our mailing list to receive industry updates and other thought leadership content from J. C. Williams Group including our National Retail Bulletin.





By submitting your information, you’re giving us permission to email you. You may unsubscribe at any time.

Canadian Retail Consultants

  • Twitter
  • Instagram
  • LinkedIn

EXPLORE

Our Story
Team
Services
Sectors

Blog
Canadian NRB
US NRB
Library

GET IN TOUCH →

Contact: info@jcwg.com
Media Queries: lhutcheson@jcwg.com

1 Dundas Street W, Suite 2500
Toronto, ON, M5G 1Z3

@2022 J.C. Williams Group
Privacy Policy

Real Estate & Community Master Planning

Your vision for a thriving business is integral to any economic infrastructure; your customers are at the centre of all planning and decisions. Creating a clear and concise roadmap that factors every facet of the customers’ experience is crucial for success. Your plan must consider vendors, tenants, landlords, developers, government agencies, and other facilities that your retail space will benefit or affect. Your collaboration with the JCWG team will ensure a detailed master plan that includes clear objectives supported by extensive research that considers every component of your business community.

Resources and Techniques:

  • Retail demand calculations
  • Trade area analysis
  • Market gaps and opportunities
  • Zoning and space requirements
  • Retail supply audits
  • Trade area psychographics and demographics
  • Pedestrian and traffic counts

Expert Witness & Advisory Services

There are many moving parts in a customer-centric business, and you may encounter legal setbacks and disputes at any stage of your business journey. Your collaboration with the JCWG team will provide you with expert reports and testimony in trials and hearings while advising legal counsel to ensure that you have the necessary resources required to manage and support litigation impacting every aspect of your case.

Resources and Techniques:

  • Discovery
  • Expert report preparation
  • Trial testimony
  • Business strategy review
  • Determination of damages

Concept Development & Space Planning

Concept Development services include background research, branding, right-sizing, capital budgeting all the way to detail design. JCWG can work from an idea or join a design process to enlighten, validate and support implementation. A vacant property can also be best filled from a concept development exercise.

It may be your idea, our research results, or both. Once a potential retail concept is identified is needs to be developed and validated. The JCWG team has the capacity to develop the concept characteristics from aesthetic & functional planning, design standards, location requirements, capital requirement and validation through demand, trade area and benchmarking analysis.

Resources and Techniques:

  • Functional planning and programming
  • Concept design and development of design standards
  • Detailed design services including base building requirements
  • Marketing plan and strategy execution
  • Management and staffing selection
  • Tenant mix and product curation
  • Short term and long term KPI definition and monitoring
  • Operational audits
  • Expertise sourcing and partnering
  • Site selection, design development and project enduring, operations human resources, start up inventories, and capital costing
  • Physical programming and concept design

Branding & Marketing

Winning brand equity must happen on so many platforms in today’s retail world with a consistent message and quantifiable return. JCWG understands comprehensive internal and external brand messaging that identifies the uniqueness and market advantage of a retail busines. Your collaboration with the JCWG team will strengthen your marketing strategy to build stronger connections with your audience through your brand.

Resources and Techniques:

  • Brand assessments
  • Unique selling proposition, noble purpose, and differentiation authentication
  • Brand and marketing implementation
  • Communications plans
  • Insightful transition to row market share from research
  • Customer feedback and product evaluation

Research & Insights

The amount of data available to customer-centric businesses can be overwhelming. Understanding the metrics’ influence on strategy is imperative to success. An experienced eye can save a lot of time and misguided investment to provide relevant and actionable insights.

The JCWG project team collaborative approach provides access to unparalleled experience to mine and capitalize on.

Resources and Techniques:

  • Custom market studies and benchmarking
  • Market sounding and listening
  • Case studies
  • Global resources through our International partners, The Ebeltoft Group
  • Demand assessment and market share analysis
  • Daytime population data, tracking, and analyzing where consumers are and when
  • Quantitative consumer data gathering, both published and unpublished, from various external sources and our personal database gathered from industry projects
  • Qualitative data gathering and insights
  • Interviews (consumer and executive), focus groups, online surveys, and social listening
  • Employee and customer motivational metrics
  • Research validation and interpretation to insights

Retail Strategy

JCWG supports retail-related businesses with a proprietary approach that is based on a strategic model developed through nearly 50 years of experience guiding clients. Retail strategy must translate vision into a plan which addresses the client’s resources to implement. JCWG focuses on delivering strategies with vision and is supported by a ‘nuts and bolts’ approach to operationalizing. JCWG applies strategic thinking processes and market research to develop or revitalize your strategy.

Resources and Techniques:

  • Definition and prioritization of client goals, needs and wants
  • Thought starter and results oriented workshops to enhance planning team input and integration of JCWG research and expertise
  • Current situation snapshot, trade area analysis, market gap, and competitive audits (physical and digital)
  • Tenant and product curation, clustering, and right sizing
  • Tailored processes to match client cultural, operational, and financial needs
  • Productivity metrics and comparisons
  • Active, fun, and energized learning, sharing, and strategizing experiences
  • Financial modelling incorporating research findings
  • Risk analysis and mitigation
  • Threat and opportunity analysis
  • Omnichannel platform harmonization
  • Stakeholder and financing approval support
 

Loading Comments...