RETAIL SALES – USA – OCTOBER 2016

BY: PAUL YOUNG, CPA, CGA

DATE: NOVEMBER 12, 2016

OVERVIEW

• This presentation will discuss retail sales for Canada. The presentation will focus on sales, trends and issues facing the industry.

AGENDA

• Summary

• Trends

• eCommerce

• Bankruptcy

• Trends

SUMMARY - UNITED STATES RETAIL SALES – OCTOBER 2016

• US retail sales figures have been announced and there was a 0.8% rise in the most recent month with the previous one being revised up to 1%. That’s the strongest back to back performance since March 2014. (Source – Forbes - http://www.forbes.com

• U.S. retail sales rose more than expected in October as households bought motor vehicles and a range of other goods, pointing to sustained economic strength that could allow the Federal Reserve to raise interest rates next month. Source – Reuters - http://www.reuters.com

• Commerce reported that October retail sales saw a 0.8 percent increase over September at $465.9 billion and a 4.3 percent annual gain, and the NRF Reported that retail sales, excluding automobiles, gas stations, and restaurants, were up 0.9 percent from September to October, following a 0.2 increase from August to September and were up 2.2 percent annually. Source - http://www.logisticsmgmt.com

• eCommerce YTD Oct/16 is 12% higher as compared to YTD Oct/15. More and more consumers in the United States are buying on-line

• Home building materials has seen significant improvement in 2016 led a strong United States housing. Market there could be price pressure as there are issues with softwood lumber.

US RETAIL SALES GROWTH BY SECTORAnalysis• eCommerce is growing at

close to 13% for 2016. More and more people are doing their shopping on-line

• Department stores are down 7.3% for 2016 as compare to 2015.

• Automotive sales are likely seeing more deals as dealerships try to blow out their end of year inventory

• Strong housing market has led to more demand for building materials

Source – BMO Economics

RETAIL SALES / USA – KEY SECTOR

Source - https://www.census.gov/retail/index.html

ECOMMERCE

• www. CFO.com

• Since 2008 online retail sales have gone from less than 4% to 8% of retail sales.

• Large retailers continue to review the operations as part of support their online model

BANKRUPTCY

• www. CFO.com

• In a retailing environment where capital allocation can mean the difference between survival and failure, a fair number of companies just haven’t been able to cut it. Indeed, failing retailers have been much more prone to slide from bankruptcy to liquidation than the rest of corporate America, according to an August Fitch study, which analyzed 30 retail bankruptcies dating from the early 2000s to the present that collectively had $10.5 billion of debt. Half of the retail bankruptcies (15 of 30 cases) were resolved as liquidations, compared with the 17% rate seen across all corporates.

RETAIL TRENDS• Pop-Up Puts Down Roots

• Barbie’s Dreamhouse Gets Smart

• Papa John’s to the Rescue

• Hotel Retail

• M-Commerce Leaders

• Tough Crowd

• Here’s Where I Work

• A Nibble and a Tuck

Source - https://nrf.com/news/stores-trends-november-2016