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Retail sales were below expectations in May, ticking up just 0.1% from the previous month and 2.3% from the year before, according to the latest Census data.
A research note from JPMorgan analysts said that “overall, May was yet another weak month for retailers driven by choppier weather and increasingly cautious consumer sentiment. Indeed, 5/10 categories decelerated on a YoY basis vs. April with the exceptions being autoparts, nonstore, and sporting goods.”
Categories that saw a slowdown last month included furniture, building supplies, and restaurants.
Return to normal: Some economists, however, see the numbers as a blip on the path to normalization in the wake of the pandemic.
“Retail sales underwhelmed in May, though much of the weakness was caused by lower gasoline prices and the underlying details paint a more encouraging picture than the headline data,” Nationwide Financial Markets Economist Oren Klachkin wrote in a brief. “Overall, we see this report as another step toward normalization.”
A post-pandemic boom in retail sales lasted longer than anticipated, he added, and now the numbers appear to be trending toward a “normal economic environment.”
Unhappy customers: In the meantime, another measure suggests customers are less-than-pleased with retailers’ customer service.
Forrester’s US Customer Experience Index hit “an all-time low” since launching in 2016, with respondents citing “underwhelming digital experiences using chatbots” and “concerns about their personal financial situations, society, and the economy at large.” Apparently, only airlines saw an improvement in the consulting firm’s index.
“US consumers are having, on average, the worst experiences in a decade,” Rick Parrish, VP and research director at Forrester, said in a statement. “Brands want to create better experiences, and they realize that putting the customer at the center of their business is the way to do it.”