Retail sales slowing down in November not causing significant concern within industry circles

Retail sales in the United States saw a slight increase in November, rising 0.2% to $528 billion, according to the U.S. Census Bureau. However, this growth was not consistent across all sectors, with some retailers experiencing sluggish sales.

Despite the overall increase, the growth in retail sales stood in contrast to other generally positive economic data. The sluggish sales were attributed to a decrease in department stores, sporting goods, and health and personal care sales, as well as a decline in apparel sales, according to Moody's Vice President Mickey Chadha.

However, there were bright spots in the retail sector. E-commerce players like Amazon, off-price retailers like TJX and Ross, value and convenience-oriented retailers like Dollar General and Dollar Tree, and discounters and warehouse clubs like Walmart and Target were expected to drive the growth in retail sales.

Moody's analysts remain optimistic about the retail sector due to strong consumer confidence, wage growth, low unemployment, and a strong macro-economic environment in the U.S. They expect retail sales growth of over 3.5% for 2019.

NRF Chief Economist Jack Kleinhenz also expressed optimism about the holiday season for retailers. He attributed the decline in November retail sales to the calendar change and noted that November's sales were up against strong 2018 numbers. "Next month could show a strong comparison" due to last December's weak numbers, Kleinhenz said.

Instinet analyst Michael Baker suggested that the late Thanksgiving holiday could have contributed to the sluggish retail sales growth. He also noted that apparel sales were particularly soft in November and were likely most impacted by the holiday shift.

Despite the challenges faced by some retailers, there are signs of growth in the e-commerce sector. In 2019, the growth prognosis for e-commerce platforms has significantly increased, as more consumers are shopping online.

Some of the leading e-commerce platforms that have experienced strong growth in 2019 include Amazon, eBay, Alibaba and JD.com, Shopify, and Walmart. These platforms have distinguished themselves through their innovative approaches, integration of new technologies, and expansion of their services.

Moody's and Instinet may have made similar trends and predictions for these e-commerce platforms in their analyses. Baker expressed optimism about the holiday season for retailers, despite the reported December weakness in 2018 not indicating real issues with spending.

An earlier report from the NRF found that a record 189.6 million U.S. shoppers went to stores and retail websites during the five-day shopping weekend from Thanksgiving through Cyber Monday this year, up 14% over last year. General merchandise sales were flat, with Target and Walmart taking market share, as noted by Baker. The NRF's analysis shows retail sales, excluding certain sectors, were up 2.1% year over year.

Retail sales slowing down in November not causing significant concern within industry circles