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NEW YORK — Bitterly cold temperatures and snow throughout much of the country late in the month put the chill on February retail sales, which declined for the third consecutive month, according to the Commerce Department.
Bitterly cold temperatures and snow throughout much of the country late in the month put the chill on February retail sales, which declined for the third consecutive month, according to the Commerce Department.
It was the first time sales had decreased for three months in a row since 2012.
However, on an adjusted, year-over-year basis, sales rose 3% during the month, according to the National Retail Federation (NRF). "Extreme winter weather in many parts of the country impacted store sales in February and, as such, monthly retail sales came in weaker than expected," says Jack Kleinhenz, chief economist for the NRF. "While employment and wages have improved, consumers throttled back their spending in February, although they maintain the desire and the means to spend.
"With the onset of warmer, springlike temperatures and an earlier Easter, consumers will likely shake off the winter blues and retail sales should rebound."
While several retail segments experienced sequential declines in February, all major categories recorded year-over-year increases. For example, general merchandise store sales slipped 1.2% month to month, but edged up 0.4% over February 2014. Sales from health and personal care stores, meanwhile, dipped 0.7% sequentially, but gained 4.4%, year over year.
Among the few chains still reporting monthly sales, Costco Wholesale Corp. recorded a 4% increase to $8.18 billion, while chainwide comparable-store sales expanded 1%, as U.S. warehouses turned in a 2% increase and international units were flat. Excluding negative impacts from gasoline price deflation and foreign exchange rates, though, U.S. comp-store sales were up 7% and international warehouses surged 12%, for an overall increase of 8%.
In the drug channel, Rite Aid Corp. posted a 1.7% rise to $2.56 billion, while same-store sales advanced 3.3%, driven by a 4.1% increase in the pharmacy that outpaced a 1.6% rise at the front end.
Regional discounter Fred’s Inc. recorded a 2% drop in monthly sales to $154.1 million, but that performance reflects the closure of 62 stores. Excluding those outlets, total sales moved up 3%.
