Stalling Car Sales Are Going To Hurt US Retail
The largest category of US retail is in free fall—the pace of auto sales in the US has slowed down significantly during the first half of this year after seven consecutive years of sales growth.
Vehicle sales account for 20% of retail spending, with groceries in second place—making up 13%, and a slowdown in the auto industry is bad news for US retail as a whole, Bloomberg reports. That’s because car sales have boosted overall retail sales figures by offsetting weakness in gas stations, department stores and electronics.
The question now is which retail segment will pick up the slack? Analysts don’t have that answer, although there is some hope restaurants and hobby stores could fill the void—those two areas have enjoyed accelerated growth in recent quarters. [Bloomberg]
