This presentation will discuss Retail Sales for United States for the period-ending August 31, 2016. Consumer spending is a key driver of the economy as such the information needs to be review along with other areas like housing starts, manufacturing, GDP as well as other market information.

1. UNITED STATES RETAIL
SALES FOR AUGUST 2016 –
ANALYSIS AND COMMENTARY
By: Paul Young, CPA, CGA

2. AGENDA
1. Summary
2. Key Stats
3. Key Quotes
4. Retail Sales / Internet of Things
5. Ecommerce
6. Retail Trends
7. Consumer Price Index
8. Summary

3. PAUL YOUNG, CPA, CGA - BIO
1. 26+ years experience in Corporate Finance, Academia and
Financial Solutions
2. Focuses on solutions for customer including reporting, taxation,
automation, analyzing of trends, etc.
3. Contact information: Paul_Young_CGA@Hotmail.com
1. You can find Paul Young on linkedin as well as slide share providing blogs
and/or presentations related to government policies, economic trends,
reporting, financial solution, Financial Performance Management, Risk
Management, Costing, etc.

4. SUMMARY
1. The U.S. Census Bureau announced today that advance estimates of U.S.
retail and food services sales for August, adjusted for seasonal variation
and holiday and trading-day differences, but not for price changes, were
$456.3 billion, a decrease of 0.3 percent (±0.5%)* from the previous
month, and 1.9 percent (±0.7%) above August 2015. Total sales for the
June 2016 through August 2016 period were up 2.4 percent (±0.5%) from
the same period a year ago.
2. The June 2016 to July 2016 percent change was revised from virtually
unchanged (±0.5%)* to up 0.1 percent (±0.2%)*. Retail trade sales were
down 0.5 (±0.5%)* from July 2016, and up 1.4 percent (±0.7%) from last
year. Nonstore retailers were up 10.9 percent (±1.4%) from August 2015,
while Health and Personal Care Stores were up 7.8 percent (±2.3%) from
last year.
Source: https://www.census.gov/retail/marts/www/marts_current.pdf

5. KEY SEGMENTS
Source: https://www.census.gov/retail/marts/www/marts_current.pdf

6. KEY QUOTES/USA RETAIL SALES –
AUGUST 2016
1. Sales at U.S. retailers dropped more than forecast in August, indicating a pause in recent consumer-
spending strength that has carried the economy. Purchases declined 0.3 percent from July, the first drop in
five months, after a revised 0.1 percent advance in the previous month, Commerce Department figures
showed Thursday in Washington. The median projection of economists surveyed by Bloomberg called for a
0.1 percent decline. Excluding cars, sales unexpectedly fell 0.1 percent. An easing in vehicle buying
matched a lackluster performance elsewhere, with sales falling in seven of 12 retail categories outside
autos. While low borrowing costs, cheap gasoline prices and steady job gains should keep a floor under
demand, wage growth remains slow and sustained weakness in consumer spending could limit any
second-half economic rebound – Source: Bloomberg News
2. U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of
other goods, pointing to cooling domestic demand that could further diminish expectations of a Federal
Reserve interest rate increase next week. Source – CNBC
3. Receipts at auto dealers slipped 0.9% in a disappointing month that spurred some industry leaders to
predict sales are unlikely to top last year’s record. Sales surged in the past few years as millions of
Americans upgraded to new cars and trucks to replace aging vehicles they had held onto in the wake of a
devastating recession. Sales at gas stations fell 0.8% last month, reflecting a decline in prices that often
takes place near the end of the summer driving season. That’s a good thing for consumers, though, giving
them more cash to spend on other goods and services. Sales also declined 1.4% at home-improvement
centers and 0.6% at department stores that have been locked in a losing battle with online competition.
Sales even fell for internet sellers and mail-order companies for the first time since the start of 2015. Only
restaurants and apparel stores, helped by back-to-school demand, showed much strength. Restaurant
sales increased 0.9% and clothing-store receipts climbed 0.7%, the largest gain since late last year. Despite
the dropoff in retail sales, most economists predict the improved finances of American households will
help increase spending in the final months of 2016. That could give the economy a shot in the arm after
lackluster growth in the first half of the year. Source: Marketwatch

7. INTERNET OF THINGS / WEARABLE
DEVICESWearable tech, which was seeing sizzling sales growth a year ago, is cooling this
year amid consumer hesitation over new devices, a survey showed Sept. 15. The
research firm IDC said it expects global sales of wearables to grow some 29.4% to
some 103 million units in 2016. That follows 171% growth in 2015, fueled by the
launch of the Apple Watch and a variety of fitness bands. "It is increasingly
becoming more obvious that consumers are not willing to deal with technical pain
points that have to date been associated with many wearable devices," said IDC
analyst Ryan Reith. So-called basic wearables -- including fitness bands and
other devices that do not run third party applications -- will make up the lion's
share of the market with some 80.7 million units shipped this year, according to
IDC.
Source: http://www.industryweek.com/technology/wearable-tech-market-cools-
consumers-step-back?NL=QMN-01&Issue=QMN-01_20160916_QMN-
01_438&sfvc4enews=42&cl=article_6&utm_rid=CPG03000001519274&utm_cam
paign=14504&utm_medium=email&elq2=0076720de20848729362e9f372ea9b6
3

8. UNITED STATES - ECOMMERCE
This timeline shows the United States' share of global retail e-commerce sales from 2015 to
2020. In 2015, e-retail sales in the United States accounted for 22.2 percent of global retail e-
commerce. This share is projected to decrease to 16.9 percent of the total global e-retail
market in 2020.
Source: http://www.statista.com/statistics/243699/share-of-global-retail-e-commerce-sales-
usa/

9. RETAIL TRENDS / UNITED STATES
1. Pampered Pets
2. From Burritos to Burgers
3. What would John Lennon Wear? (60s clothers revival)
4. McDonalds 2020 (Kiosk, make your own burger, etc)
5. More use of Drones (7-eleven)
6. Taking on Amazon - There are not many companies willing to take on Amazon, but an upstart in the United
Kingdom is primed for the challenge. NearSt is essentially a book-locating and delivery service. Using the app,
London-based shoppers can search nearby shops for the book of their choice and then opt to have it delivered
within an hour.
7. Ben and Jerry “Scoop for Democracy” - ce cream giant Ben & Jerry’s remains one of the most outspoken brands
when it comes to social issues — even though it’s owned by huge multinational consumer goods company
Unilever. So it should come as no surprise that the dynamic dessert duo is dipping a scoop into the 2016 election
cycle. But don’t look for the brand to take sides.Empower Mint, a new flavor of peppermint ice cream with fudge
brownie pieces and fudge swirls, is intended to push people to get out and vote. The company says the fudge-
filled variety reflects its belief that voting gives everyone a taste of empowerment and that an election should be
more “by the people” and less “buy the people.”
Source: https://nrf.com/news/stores-trends-september-2016

10. CPI – CONSUMER PRICE INDEX
U.S. consumer prices increased more than expected in August as rising
rents and healthcare costs offset a drop in gasoline prices, pointing to a
steady build-up of inflation that could allow the Federal Reserve to raise
interest rates this year.
The Labor Department said on Friday its Consumer Price Index rose 0.2
percent last month after being unchanged in July. In the 12 months
through August, the CPI increased 1.1 percent after advancing 0.8
percent in July.
Source: http://www.cnbc.com/2016/09/16/us-consumer-price-index-
aug-2016.html

11. SUMMARY
Retail Sale are important area for the economy. The struggles within
retail sales means the economy in the United States will continue to
experience slow growth.