WASHINGTON — Retail sales were lackluster across the board in July, as department stores and specialty chains saw their sales dip, according to the Commerce Department’s report released Thursday.
Sales at department stores fell 1 percent to $17.96 billion in July compared with June, on a seasonally adjusted basis. Sales were up slightly by 0.6 percent versus a year ago.
At apparel and accessories stores, sales dipped a seasonally adjusted 0.5 percent last month to $16.72 billion, but were 6.9 percent ahead of last year.
Sales at general merchandise stores were flat last month at $44.6 billion, but were up 7 percent versus July 2004.
The lukewarm sales performance in July followed a more robust spending picture in June, when there was a 1 percent increase in sales at apparel and accessories stores and a 1.3 percent rise in department store sales.
Overall, retail sales rose by 1.8 percent, after auto sales strengthened by 6.7 percent for the month.
Charles McMillion, president and chief economist at MBG Information Services, said sales revenues were up 5.4 percent through the first seven months of the year despite the weak performance in July.
“The strength of broad consumer spending in the months ahead is now highly dependent on the housing boom and related borrowing,” McMillion said in a statement. “I continue to expect widening retail bifurcation with a strong upmarket but a weak overall back-to-school and holiday sales season, with accelerating job losses in the textile and apparel industry, autos and other manufacturing industries.”
Taking a broader look at the sales data, Rosalind Wells, an economist with the National Retail Federation, said the NRF expects retail sales to increase 5.4 percent this year over 2004.
“Once again, consumers have shrugged off concerns about higher gas prices and continued to surprise industry analysts,” Wells said in a statement. “July has shown some surprising strength given that retailers are focused on summer clearance sales as they prepare for back-to-school.