What Is Retail Sales?

Retail Sales measures the total revenue collected from retail stores nationwide, both physical and digital, during a specific period.

Retail Sales: A Detailed Explanation

Retail Sales is a U.S. economic indicator that measures how much money consumers spend on goods in all retail stores across the country within a month, quarter, or year.

Goods included in the Retail Sales report include:

• Clothing and apparel
• Electronics and appliances
• Furniture and home furnishings
• Food and beverages
• Personal care items
• Automobiles and auto parts
• Sporting goods
• Books, music, and hobby items
• Building materials and garden equipment

Retail Sales data tracks these goods because they represent physical items that consumers purchase and consume. It does not include services such as healthcare, education, or financial services, which are not part of Retail Sales.

Retail Sales is an important measure of retail sector performance, reflecting consumer spending trends and economic activity. When Retail Sales are strong, it indicates that consumers are spending more money.

You can find more information about Retail Sales and data updates on the U.S. Census Bureau’s website.

How is Retail Sales Calculated?

Retail Sales data is gathered by sampling sales receipts from various retail stores of different sizes and types. The data includes total revenues and adjusts for factors like seasonal variation, holidays, and trading-day differences to provide a clearer picture of underlying trends.

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Retail Sales: Chart

Common Questions About Retail Sales

What does an increase in Retail Sales indicate?

An increase in Retail Sales reflects higher consumer spending across retail outlets, often suggesting a growing economy.

Does Retail Sales data include online shopping?

Yes, Retail Sales data includes receipts from both physical stores and online retailers to reflect consumer spending across various shopping platforms.

What sectors are excluded from Retail Sales?

Retail Sales data focuses on goods and does not include spending on services. Sectors like healthcare, education, and financial services are excluded from these reports.

How does the government use Retail Sales data?

The government uses Retail Sales data to assess the health of the retail sector and overall economic activity. This data helps gauge consumer confidence and spending behavior, which are key indicators of the broader economic environment.

Can Retail Sales predict economic downturns?

While Retail Sales is not a standalone predictor, significant and sustained declines in Retail Sales can signal potential economic downturns. Analysts closely monitor these trends as part of broader economic assessments.