Retail sales increase for third straight month

Consumer spending continued to chug along in September, leading to the third straight monthly increase in retail sales.

The Commerce Department reported Friday that total retail sales nationwide rose 0.6 percent in September, with electronics and appliance retailers, hardware stores and furniture merchants showing some of the strongest gains.

Growth in the home improvement and furniture categories was driven by consumers who are finally deciding to spruce up their homes after delaying fixes, said Marshal Cohen, chief industry analyst for The NPD Group, a Port Washington market research firm. Back-to-school shopping as well as new and innovative gadgets helped boost sales in the electronics sector, he said.

"With the holidays coming, September and October are big months for home improvement," Cohen said. "They're getting the house ready. People are recognizing, 'I still have my job. I have to fix the hole in the wall.' They're finally recognizing that their job isn't going away so they might as well spend some dough."

September sales for electronics and appliance stores rose 1.5 percent from August and 5.6 percent compared with September of last year, according to the Commerce Department report. Building material and garden equipment and supplies dealers experienced a 0.6 percent monthly increase and a 7.3 percent rise compared with September 2009. Furniture and home furnishing stores saw a 0.5 percent monthly rise and a 3.1 increase from sales in the same period last year.

Despite a frustrating business year, sales of appliances and television sets have been among P.C. Richard & Son's bright spots, said Gregg Richard, president of the Farmingdale-based electronics and appliance chain.

"People always need appliances," Richard said. "They may not be renovating an entire kitchen, but they are certainly replacing older appliances for more efficient ones, so that business has always been a good steady business for us."

Flat-screen TVs have become more attractive as prices in general have come down significantly, Richard said. Sports and playoff games with local teams such as the Yankees also help business, he said. But the stores aren't seeing impulse purchases.

While the report revealed sales growth in the hardware sector, that didn't quite resonate with some local hardware stores. Consumers are doing routine projects like painting their homes for the holidays, spring cleaning and fall leaf cleanups, but they have been cautious about making larger purchases and have been waiting until the last minute to make fixes, said James Pecoraro, co-owner of three hardware stores, including Glen Head Hardware in Glen Head and Sea Cliff Paint & Hardware.

"Yesterday we had rain and as it starts raining people are coming in to buy roof cement to fix roofs," Pecoraro said. "They are waiting until the last possible second to do what they need to do."

Sales volumes

Monthly sales increases, August to September, for retail and food services:

- Motor vehicle and parts dealers 1.6%

- Electronics and appliance stores 1.5%

- Miscellaneous store retailers 1.4%

- Nonstore retailers 1%

- Building material and garden supplies dealers 0.6%

- Furniture and home furnishing stores 0.5%

- Health and personal care stores 0.5%

- Food and beverage stores 0.4%

- Grocery stores 0.4%

- Gasoline stations 0.4%

- Food services and drinking places 0.3%

- Sporting goods, hobby, book and music stores 0.2%

- General merchandise stores 0%

- Department stores -0.1%

- Clothing and clothing accessories stores -0.2%

- Retail and food services total 0.6%

- Retail excluding automobiles and parts 0.4%

SOURCE: U.S. CENSUS BUREAU