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Analyzing the Johnson Redbook Same-Store Sales Index

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Oct. 14 2015, Published 12:58 p.m. ET

About the index

The Johnson Redbook Same-Store Sales Index is released by Redbook Research. It’s released weekly. The index gauges the performances of the six retail categories.

  • apparel specialty
  • departmental stores
  • discount stores
  • furniture
  • drug
  • miscellaneous

The index gives an idea about how the above retail categories are growing organically YoY (year-over-year) on a weekly basis. It’s a crucial indicator of US retail stock’s future performances. This is shown in the above chart.

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Recent same-store sales index growth

Redbook Research released its report for the week ending October 10, 2015. The same-store sales index rose 1.1% on a YoY basis. It fell by 0.20% from last month. The same-store sales index has been falling since the beginning of September. In September, the same-store sales index grew by an average of 1.2% on a YoY basis. During the same period last year, the index rose 4.1% on average. For US retailers, a fall in the index is concerning. The retailers include companies like Walmart (WMT), Costco (COST), and Macy’s (M). The index can also impact ETFs like the Consumer Discretionary ETF (VCR) and the MSCI Consumer Discretionary Index ETF (FDIS) if the trend continues.

Redbook Research indicated that the sales might rise later in October. Customers will likely be more active due to Halloween and early holiday shopping. The growth estimate for October is 1.5% on a YoY basis.

In the next part, we’ll look at how the ICSC-Goldman Sachs Retail Chain Store Index is placed.

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