The numbers in retail always tell the story and July retail industry sales make a clear statement: retail is continuing its positive growth as we move into third quarter of 2010. The past months show that specialty hard lines, home, footwear and automotive are continuing as top performers. The flagship department store group continues to put up solid comparable store growth, with Macy’s dominating. For many of these retailers July marked the fourth straight month of comparable store growth over 2009. Even though last year’s results were disappointing you can clearly see the industry moving in the right direction.

The overall industry increase was again in the 3% range, showing consistent growth, but we have retailers on both sides of that number. Although several analysts reported results below their expectations we are pleased to see a consistently positive trend across most brands. Exceptions to this are few, such as the struggling Hot Topic, posting yet another month of declining comparable store sales with a 9% drop vs. 2009 results. Contrast this to Limited Brands posting a 12% increase vs. last year.

The description “slow and steady” best describes the overall recovery trend. A consolidated summary is below. The numbers tell the story.

Unemployment
Total employment in the United States fell by 131,000 positions in July as the unemployment rate remained at 9.5%, according to new figures released from the Labor Department. The most significant losses were seen in the government as 202,000 jobs were shed. The end of 143,000 temporary census jobs made up the bulk of losses, however, cash strapped state and local governments also trimmed 48,000 positions.

Total private sector employment increased for the seventh month in a row, adding 71,000 positions. The professional, management and related occupation unemployment rate in July was 5.0%, down from 5.5% a year ago.

Recruiting
Virtually every practice at Retail Search Group is managing dramatically increased demand over 2009. Our candidate placement activity on a year-over-year basis is up 40%.

Retail CEOs know what is ahead and they are committed to securing leadership teams of the best talent. Even currently-employed, high demand candidates are now willing to consider change when the right opportunity is presented. This is a significant market change from a few months ago.


Click here to view July Retail Sales Results

June marked the third straight month of comparable store increases for national retailers. The important trend we see is regular price retailers across many sectors, especially apparel, are showing strong comparable growth. Department stores are attracting their customer – Nordstrom led the charge with a 14.1% comp store increase. Best Buy's most recent quarter release boasts a 7% comp increase and Advance Auto Parts' most recent quarter led their segment with a 7.7% comp increase. Footwear and specialty retailers like Brookstone (+14.1%) are posting double-digit growth.

The overall increase was in the 3% range but there are certainly chains on both sides of that number. This is a sharp contrast to 2009 where there was month-after-month of sales declines. We clearly have more consistent consumer activity for the first half of 2010 as evidenced by the national chain results. You may view our consolidated nationwide sales summary by clicking the below link.

Unemployment
According to the Labor Department, U.S. total payroll decreased by 125,000 positions in June, while the unemployment rate declined to 9.5 percent. Included in the total payroll drop was a decrease of 225,000 temporary U.S. Census jobs. Total private employment actually increased by 83,000 positions, up from the gain of just 33,000 in May.

For the first time this year, the number of long-term unemployed (those without a job for more than six months) declined, dropping 12,000 between May and June.

Recruiting
Your competition is upgrading their talent. Activity continues to accelerate. Currently employed, high demand candidates are now willing to consider change for the right opportunity. This is a significant market change from a few months ago. If you haven’t already, I would encourage you to develop a relationship with our team. They’re the finest retail specialists in the Retail search industry!


Click here to view June Retail Sales Results

After two straight months of double-digit comparable store increases the attached May results reflect a solid, yet more competitive growth trend. Specialty apparel, department stores and several other segments showed encouraging gains. Comp store sales reflect the most consistent consumer demand that we’ve seen since early 2009.

Unemployment
The Labor Department reported improved unemployment at 9.7% vs. 9.9% for the May period. Management, professional and related occupations remained unchanged at 4.5% for May. A Careerbuilder® survey revealed that 40% of employees plan to change jobs this year, based largely upon a belief that they’ve been doing more than one job as a result of downsizing. Compensation was also sited as a factor in their decision to make a change.

Recruiting
At Retail Search Group the month of May was the largest volume month in the past year. Each Director’s practice is very busy, and the activity is accelerating. The best performing retail brands are reacting to their business by attracting best-in-class candidates. These retailers are investing in rapid ROI assets – top talent that steps into the role and moves their business quickly. Retail brands with the best people will dominate comp store sales – but when has that not been the case!

Click here to view May Retail Sales Results

If you haven’t already, I would encourage you to develop a relationship with our team. They’re the finest retail specialists in the search industry. They are:

Kim Franchi, Director Field Operations Recruiting, kim@retailsearchgroup.com

Joan Cartelli, Director, Buying & Merchandise Recruiting, joan@retailsearchgroup.com
Leona Williams, Director Planning & Allocation Recruiting, leonaw@retailsearchgroup.com
Steve Olson, Director Finance & Accounting Recruiting, steve@retailsearchgroup.com