Same Store Retail Sales Slowdown, Still Growing

Same store sales were up 3.4 percent year-on-year in the January 5 week, a sharp 1.6 percentage point slowdown from the prior week's pace and the weakest reading since the December 9 week. Month-to-date sales versus the prior month also slowed in the week by 0.2 percentage points to a 0.1 percent gain, while the increase in full month year-on-year sales shrank by 0.9 percentage points to 3.4 percent, the lowest in five weeks. The weakening in the sales metrics of retailers in Redbook's sample during the first week of the year suggests a cold weather-driven cooling in ex-auto ex-gas retail sales in January following what should prove to be very strong sales results for December.