uploads///MoM Growth According To Business Type

Automobiles and Parts Slowed Growth In Retail Sales


Dec. 4 2020, Updated 10:52 a.m. ET

Breakdown of retail sales

The retail and food services sales for November 2015 grew by 0.4% if we exclude the automobiles and parts retail sales. The Automobiles and Parts section of retail sales fell by 0.4%. This was one of the main reasons for slow retail sales in the month. The other business types that fell were Furniture sales, Building Materials sales, and Gasoline stations, as can be seen from the graph below.

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How important are these numbers?

In a consumer-driven economy like the United States retail, the sector plays a very important part in the growth of the economy. Also, retail sales act as a critical indicator for the retail sector’s future. The correlation of retail sector gauged by the SPDR S&P Retail ETF (XRT) against retail sales since 2010 has been 0.96. This means that the retail sector has been moving coincidentally to US retail sales and the economy as a whole. So, retail sales and their drivers are highly important indicators of the US economy’s health.

About the XRT ETF

The SPDR S&P Retail ETF (XRT) is an exchange traded fund with exposure to around 100 retail stocks of the United States. Its correlation with the S&P 500 (SPY) broad market index is highly positive. Some of the stocks that the XRT ETF has exposure to include Netflix (NFLX), Amazon.com (AMZN), Kroger (KR), and Dollar Tree (DLTR).


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