Retail sales are an important economic indicator because consumer spending drives much oI our

economy. Think oI all oI the people and companies involved in producing, distributing, and
selling the goods we use on a daily basis like Iood, clothes, Iuel, and so on. In this essay, we
would look at the contribution oI the retail industry to the economy oI Ghana. And it would be
concluded that the retail industry is indeed a major contributor to the Ghanaian economy.
When consumers open their pocket books, the economy tends to hum along. Retail shelves
empty and orders placed Ior replacement merchandise. Plants make more widgets and order raw
material Ior even more. However, iI consumers Ieel uncertain about their Iinancial Iuture and
decide to hold oII buying new reIrigerators or blue jeans, the economy slows down. This is why
politicians have resorted to tax rebates to give the economy a boost.
By putting cash in consumers` hands, they hoped to spend their way out oI a recession.
On the 12th oI every month, the Census Bureau releases the Retail Sales Index, which is a
measure oI retail sales Irom the previous month as determined by a sampling oI stores both large
and small across the country. Although subject to Iuture revision, the market closely watches this
number as an indicator oI the nation`s economy.
The report actually lists two numbers. The Iirst is Retail Sales and the second number is Retail
Sales Ex-Auto or without automobile sales included. The reason is auto sales can skew the
overall number that they are big-ticket items and subject to seasonal Iluctuations.
The number crunchers on Wall Street come to their own conclusions beIore the Census Bureau
issues the report and that number is usually close. However, iI the 'street consensus and the
actual report diIIer signiIicantly, look Ior the market to react abruptly. The market does not like
surprises.
1he reLall lndusLry ls a secLor of Lhe economy LhaL ls comprlsed of lndlvlduals and companles engaged ln
Lhe selllng of flnlshed producLs Lo end user consumers MulLlsLore reLall chalns ln Lhe uS are boLh
publlcly Lraded on Lhe sLock exchange and prlvaLely owned
Definition: Retail Sales are the backbone oI our economy. The Retail Sales Data released
monthly by the Census Bureau measures the merchandise sold by companies. It includes all
retail operations in the nation through a sampling method, Irom Wal-Mart to the local bookstore.
The Bottom Line: The Retail Sales Data measures the amount oI goods being sold each month in
the United States. It is a measurement oI the health oI the general economy.





03200820092010 World vlew opulaLlon LoLal (mllllons)19172164232623822439 opulaLlon growLh
(annual )2424242424 Surface area (sq km) (Lhousands)2383238323832383 overLy headcounL
raLlo aL naLlonal poverLy llne ( of populaLlon) Cnl ALlas meLhod (currenL uS$)
(bllllons)6461002268328373008 Cnl per caplLa ALlas meLhod (currenL uS$)340460113011901230
Cnl (currenL lnLernaLlonal $) (bllllons)17392382343336413897 Cnl per caplLa (currenL
lnLernaLlonal $)9201190149013301600 eople lncome share held by lowesL 20 Llfe
expecLancy aL blrLh LoLal (years)38616363 lerLlllLy raLe LoLal (blrLhs per woman)47444342
AdolescenL ferLlllLy raLe (blrLhs per 1000 women ages 1319)84736968 ConLracepLlve prevalence ( of
women ages 1349)24 8lrLhs aLLended by skllled healLh sLaff ( of LoLal)37 MorLallLy raLe
under3 (per 1000)9986797774 MalnuLrlLlon prevalence welghL for age ( of chlldren under 3)14
lmmunlzaLlon measles ( of chlldren ages 1223 monLhs)90838693 rlmary compleLlon raLe LoLal (
of relevanL age group)70738283 8aLlo of glrls Lo boys ln prlmary and secondary educaLlon
()90929693 revalence of Plv LoLal ( of populaLlon ages 1349)23201818 LnvlronmenL loresL
area (sq km) (Lhousands)609332494 AgrlculLural land ( of land area)633666686 Annual
freshwaLer wlLhdrawals LoLal ( of lnLernal resources)32 lmproved waLer source ( of populaLlon
wlLh access)717882 lmproved sanlLaLlon faclllLles ( of populaLlon wlLh access)91113 Lnergy use
(kg of oll equlvalenL per caplLa)404393407 CC2 emlsslons (meLrlc Lons per caplLa)0303 LlecLrlc
power consumpLlon (kWh per caplLa)330247269 Lconomy Cu (currenL uS$)
(bllllons)4981072283326173131 Cu growLh (annual )3739844766 lnflaLlon Cu deflaLor
(annual )272130202167140 AgrlculLure value added ( of Cu)3941313230 lndusLry value added
( of Cu)2827201919 Servlces eLc value added ( of Cu)3232494931 LxporLs of goods and servlces
( of Cu)4936233123 lmporLs of goods and servlces ( of Cu)6762444138 Cross caplLal formaLlon (
of Cu)2429212022 8evenue excludlng granLs ( of Cu)237137133 Cash surplus/deflclL ( of
Cu)143936 SLaLes and markeLs 1lme requlred Lo sLarL a buslness (days)18131212 MarkeL
caplLallzaLlon of llsLed companles ( of Cu)10113311996113 MlllLary expendlLure ( of
Cu)10060404 Moblle cellular subscrlpLlons (per 100 people)1133063 lnLerneL users (per 100
people)02194334 8oads paved ( of LoLal roads)3013 PlghLechnology exporLs ( of
manufacLured exporLs)201 Clobal llnks Merchandlse Lrade ( of Cu)933760343321 neL barLer
Lerms of Lrade lndex (2000 100)100123133169176 LxLernal debL sLocks LoLal (uCu currenL uS$)
(mllllons)6116673249273720 1oLal debL servlce ( of exporLs of goods servlces and
lncome)138713229 neL mlgraLlon (Lhousands)311231 Workers remlLLances and compensaLlon
of employees recelved (currenL uS$) (mllllons)3299126114136 lorelgn dlrecL lnvesLmenL neL lnflows
(8o currenL uS$) (mllllons)166143122016832327 neL offlclal developmenL asslsLance and offlclal ald
recelved (currenL uS$) (mllllons)398114913031383




Accra Mall - Cbana |oins tbe retail revolution
16 Aug 2006 - Bentel Associates International -
ntro
Construction has commenced on one oI the largest and most modern shopping malls in West
AIrica.
Construction has commenced on one oI the largest and most modern shopping malls in West
AIrica. The 20 000m2 GLA Accra Mall will be the Iirst modern shopping centre in Ghana and
will be comparable to other similar sized shopping centres anywhere in the world. Johannesburg
based Bentel Associates International (BAI), internationally recognised and award-winning retail
design experts, have designed this pioneering retail venture.
Over the past ten years, consumer demand Ior convenience and quality has grown considerably
and modern retail has been expanding at a very Iast pace in the emerging markets. Although
some critics have questioned the impact oI modern retail growth on emerging economies, it is
generally considered beneIicial as it produces a myriad oI positive beneIits that Iar outweigh any
perceived disadvantages. A growth in the retail industry has been a catalyst Ior job creation, the
reduction oI protectionism, inIrastructural improvements, improved standards oI living,
competitive advantages and economic growth.
The Ghanaian economy has been growing at an average oI Iive percent per annum Ior the last
eight years. The country is Irequently regarded as a model developing country; positive
economic beneIits have been a consequence oI democratic rule, good governance, socio-
economic reIorm, growth strategies and eIIorts to control corruption. A growing economy and a
commercial boom have resulted in unprecedented retail growth.
Ghana has a total population oI 20 million people, 35 oI which is now urbanised. One million
live in Accra, Ghana`s capital city. Accra is a city with very Iew buildings over two storeys high
and up until now, goods have been provided via a multitude oI street sellers and strip shopping
environments.
A growing middle class with disposable income has created a substantial demand Ior consumer
goods. Researchers have Iound that people all over the world are surprisingly similar in their
shopping patterns and habits and the A-grade Accra retail development is expected to raise living
standards by providing Iood and products as well as leisure Iacilities in a saIe and congenial
shopping environment. Ghanaians will be able to enjoy the goods and services widely available
elsewhere in the world.
'In many AIrican countries, open-air markets with stalls and shops have always been the norm,
we are now at a stage where shopping malls are becoming the norm, says Franc Brugman, BAI
project director in Accra. Brugman and his team were also responsible Ior the recently opened
Lagos palms in Lagos Nigeria - a world-class shopping Iacility and the Iirst oI its kind in
Nigeria. 'Consumer demand has created a trend toward Iormalised shopping centres with anchor
tenants and many national retailers. Accra Mall will provide urban Ghanaians with their Iirst
modern shopping experience. Individuals want to shop in a better atmosphere and they will
enjoy the variety and choice that a large shopping centre can provide. Retail is becoming more
proIessional and there are many beneIits Ior developers, tenants and the consumer.

The developers oI the Accra mall are the Johannesburg based Actis; the management arm oI
CDC Capital Partners, a leading private equity investor in emerging markets. Actis has been
involved in a number oI developments in other AIrican countries including the Lagos Palms. The
development in Ghana has been undertaken with the assistance oI a Ghanian partner. The
development company Ior the Accra project is Inter City Hotels.
The multi-purpose mall will be constructed along the Spintex Road near the Tetteh Quashie
Round About in Accra. Due to the Iall oI the site, the centre has a lower level showroom area
Iacing directly onto Spintex Road, whilst the main retail Iloor above is served by two modern
entrances oII a paved parking area. The second level, oII the Iood court situated centrally to the
design, houses a cinema complex.
The design oI the mall is contemporary in all aspects. 'The challenge oI developing a centre
such as this one is massive, says Brugman. 'The local economy cannot support the myriad
design speciIications required and as such all details and designs have to be careIully thought
through to ensure that not only are costs careIully controlled, but that the procurement and
delivery to site oI all construction materials Irom around the world is careIully managed.
Wherever possible the architects have tried to utilise local building materials, technology and
suppliers to the best architectural eIIect. However, the balance oI materials are all imported Irom
countries as Iar aIield as Egypt, Italy and South AIrica
Brugman says that part oI the challenge is that this is the biggest and Iirst project oI its type in
Ghana. 'Very Iew other buildings in the country will come close to the Iinishes or architecture
oI in the new centre. Finding contractors qualiIied to do the work took some eIIort. Supplies are
also a challenge. Except Ior sand and cement, the building materials will have to be imported.
Very little is produced locally, and what is available is oIten not to international standards.
One oI the unusual aspects here is that architects in the developed world would never have to
consider the incorporation oI a sewage plant into the design. The centre will boast its own water
treatment Iacility Ior all waste water as well as backup generator power suIIicient to ensure the
continued operation oI the centre should a power Iailure occur. Also interesting to note is that
the centre is located in an earthquake zone and as such, the engineers have had to ensure detailed
design encompasses all earthquake zone requirements.
Maintenance oI the building is also an important Iactor and as such all mechanical and electrical
requirements to the centre have been designed to be as energy and maintenance eIIicient as
possible.
Brugman and his team, with their recent experience in Lagos, are no newcomers to designing
retail Iacilities in AIrica, but as each country has its own peculiarities they had to become Iully
acquainted with the complexities oI the local retail market which is dominated by a growing
middle class in this increasingly aIIluent country.
The mall, with 19 700m2 retail space, will accommodate retail, Iood and service outlets ranging
in size between 60m2 - 800m2, (excluding the anchors) and an 800-space car park. Broll Nigeria
has secured the contract to provide property management services.
Two South AIrican retailers, Game and Shoprite checkers, will be the anchor tenants with a
third, an entertainment anchor, to be conIirmed shortly. 'This ultra-modern shopping centre will
have an upmarket and relaxing ambience where shoppers will be spoilt Ior choice, says
Brugman. 'The design includes an open Food Court square where restaurants and Iast Iood
retailers will Iorm the central entertainment hub oI the development. The spacious parking,
including an underground parking area, will ease potential traIIic congestion in the surrounding
area and hopeIully Iorm a shopping experience oI convenience, comIort and choice.
The design incorporates traditional internal mall circulation with several interesting vistas onto
the dynamic Iood court, open skylights and modern Ilush plastered ceiling and tiled Iloors. 'This
will be an A-grade retail venue, says Brugman, 'with top quality Iinishes equal to those in the
United States and Europe. State-oI-the-art air-conditioning, Iire protection systems and security
will ensure that this centre will be world-class. A best-practice approach has been utilised in all
aspects oI the design, which includes porcelain tiles and aluminium and glass shop Ironts and
superb interior and exterior lighting.
Most oI the design is being done in South AIrica where Brugman and his team spend a lot oI
time on the technical documentation beIore beginning work at the site, ensuring that the
drawings are accurate and advanced. The model utilised by the client is that in all instances,
consultants have a joint venture partner in Ghana who are responsible Ior on-site conditions. The
South AIrican based consultants then Ily up as oIten as possible to ensure a smooth Ilow oI
inIormation and on-site construction. An on-site Project Manager ensures that the client and
consultants have a dedicated representative present at all times. With modern technology, and
with an on-site email system and printer, design drawings produced in Johannesburg can be
issued immediately and directly to the site as they are completed or required.
BAI are at the IoreIront oI retail design and development in AIrica. The challenges are
substantial but as Brugman says, 'Our team really achieve a sense oI accomplishment when our
designs are implemented and construction is complete. We look Iorward to April 2007 when the
Accra Mall is expected to open and trust that our expertise in retail design will enhance the lives
oI the population oI Accra and Iurther aIield.
Ends.

For more inIormation, please contact:
Franc Brugman
Bentel Associates International
1he reLall markeL ln Chana ls cenLred ln Accra and a handful of companles domlnaLe Lhe lnLernaLlonal
sLandard segmenL As of mld2011 supermarkeL lLems and auLomoblles were Lhe largesL reLall segmenLs
ln Lhe counLry Llke many of lLs nelghbours ln Lhe reglon and LhroughouL Lhe conLlnenL ln Lhe pasL few
years Chana has seen Lhe appeal of formallsed reLall servlces expand among a cerLaln subseL of Lhe
populaLlon 1he counLry's newly affluenL mlddle class ls small buL growlng sLeadlly as ls Lhelr appeLlLe
for lnLernaLlonalsLandard shopplng envlronmenLs and producLs 1he lmmedlaLe success of Lhe Accra
Mall whlch opened ln 2008 has encouraged local developers Lo plan a number of new lnLernaLlonal
sLandard mall pro[ecLs ln Lhe counLry
ountries covered: Ghana

Ghana has a lot oI things going Ior it. Our AIrica team expects it to be a major economic
outperIormer over the coming years on both a regional and global level - a view that looks even
stronger with the onset oI domestic oil production. But it is the above-ground opportunities on
the consumer side that we are going to Iocus on. With a solid backdrop oI political stability,
which is especially important in West AIrica, Iollowing a succession oI, by all accounts, peaceIul
democratic transitions, Ghanaians are going to get a lot richer over the next Iew years.

Headline Industry Data2011 per capita Iood consumption local currency 10.94; Iorecast
compound annual growth to 2015 12.52

2011 beer volume sales 7.66; Iorecast compound annual growth to 2015 8.75

2011 mass grocery retail sales 41.05; Iorecast compound annual growth to 2015 46.33

Key Industry Trends

Fan Milk OutperIorming - As Ghana prepares to become AIrica's latest oil producing economy
there are going to be plenty oI opportunities on the consumer side. Incomes are rising quickly,
and even without oil revenues Ghana seems to compare pretty well with some oI the other
AIrican growth stories. Mass market consumer staples probably present the biggest opportunity
yet Ior Ghana's largest consumer companies.

The likes oI Fan Milk, Guinness Ghana and Unilever Ghana are well established but have
probably only scratched the surIace oI what they can do in the country. There is so much more
that Ghanaians can spend on Iood, and so much more branded beer that can be drunk, as per
capita consumption levels are still quite low.

Fan Milk in particular has attracted a huge amount oI attention over the past Iew months. While
Ghanaian equities did quite well in 2010, with the benchmark All-Share index growing by 32,
Fan Milk was up by more than 164, largely on the back oI a bonus share issue in November
2010.

Key Risks to Outlook Regulatory Environment Needs Addressing - While we consider Ghana`s
regulatory environment to be among the strongest in the region, our view is highly relative,
bearing in mind what else exists in the region. While Ghana is less bureaucratic than many oI its
peers, inIrastructural development still lags and the supply oI electricity continues to misIire.
This will have to be addressed to bring down the cost oI doing business.

ore Ghana Grocers Reports

Ghana Food & Drink Report Q2 2011 by Business Monitor International
The coming year should be a transIormative one Ior the Ghanaian economy. The onset oI oil
production should propel real GDP growth into double digits, ...

Ghana Food and Drink Report Q1 2011 by Business Monitor International
Ghana's domestic demand story looks increasingly exciting. It was probably already West
AIrica's most well rounded and equitable growth prospect even beIore the Ghana Statistical ...

Ghana Food and Drink Report Q3 2010 by Business Monitor International
A strong case can be made Ior Ghana to be considered Sub-Saharan AIrica`s most well rounded
growth story. Able to call on a large population ...


Industry
Nationally, the main industries are Agriculture (52.0%), Wholesale and Retail Trade (15.0%) and
Manufacturing (11.0%). The main industrial activity in the Northern Region is Agriculture (70.9%)
comprising largely of farming, animal husbandry, hunting and forestry. There is very limited manufacturing
(7.1%) in the region. Wholesale and Retail Trading also accounts for only (7.5%) of all industrial activity.
Only about (0.7%) of the population are engaged in mining and quarrying activities. A variety of other
enterprises in the industry sector, such as Fishing, Hotels and Restaurants, Communication, Health and
Education, together comprise 10.0 per cent of the total industrial activity of the region.
The proportion of the population in Agriculture is smallest in the Tamale municipality (31.3%). n the other
districts, the figure ranges between 62.2 per cent in Savelugu-Nanton to 87.2 per cent Zabzugu-Tatale.
The industry sector, (Manufacturing), accounts for less than 10.0 per cent of economic activity in all
districts except the Tamale municipality (14.4%), Savelugu-Nanton (14.8%), and Yendi (10.2%). There
are very limited mining and quarrying activities in any of the districts. The highest proportion is recorded in
Gushiegu-Karaga (1.0%), Bole (1.1%), East Mamprusi (1.0%) and Tamale (1.0%).
Wholesale and retail trading accounts for less than 10.0 per cent of all economic activity in all districts,
except for the Tamale municipality (24.3%) and Savelugu-Nanton (10.3%). Transportation, Hotels and
Restaurants, and other Service activities collectively account for between 7.0 and 22.2 per cent of all
economic activity, making this combined sector the second largest source of employment in all the
districts of the region. Four main industrial activities can be identified for the region as whole, and for the
districts. For the region as a whole, Agriculture, Manufacturing Wholesale and Retail Trade activities are
the main industrial activities, in that order, for both males and females. For the males, the order of
industries is Agriculture, Manufacturing, and Wholesale trade predominating in eight districts.
Agriculture Wholesale and Manufacturing, in two districts and Agriculture Fishing and Whole
trade/Manufacturing predominate in the two Gonja Districts, and Agriculture Manufacturing and Fishing in
Saboba-Chereponi. For the females, Agriculture, Manufacturing and Sale/Trading predominate in five
districts while Sales/Trading and Manufacturing exchange position in four districts. Fishing activities follow
Agriculture, with Wholesale/Retail trade and Manufacturing at par, in the two Gonja Districts; Fishing
follows Manufacturing and Agriculture in Saboba Chereponi. t is worth noting that males and females
both participate actively in Agriculture and Fishing activities in the two Gonja and the Saboba Chereponi,
Districts.
254y20nt status
Nearly 68 per cent of the economically active population are classified as self-employed, while 22.9 per
cent are unpaid family workers; only about 6.1 per cent are employees. This regional pattern is also
reflected in all the districts. For example, the proportion of the self-employed ranges from 50.8 per cent in
Zabzugu-Tatale, to 79.7 per cent in Savelugu- Nanton. The proportion of unpaid family workers varies
from 5.2 per cent in the Tamale municipality to 45.3 per cent in Zabzugu-Tatale. The high level of unpaid
family workers, recorded in some of the districts is probably a reflection of the high proportion of the
population in the agricultural sector.

By KoIi Adu DomIeh, Luv Fm Ghana`s emerging oil industry is creating, as anticipated, new
economic opportunities. More vehicles are expected to be imported into the country, which
reasonably means increased demand Ior petroleum products.
This, perhaps, inIorms the growing investment in Iuel retail stations.
The upstream oil industry is barely 10 months old, but there is a proliIeration oI petroleum retail
outlets and Iuel service stations across the country.
Downstream market activities oI supplying products, including bitumen and lubricants, have
over the years been handled by the oil marketing companies.
The deregulation policy oI the petroleum sector has however attracted indigenous entrepreneurs
and other individual entrants.
With increasing interest in storage, distribution and sales, there appears to be good prospects Ior
investors; Iuel distribution has become an attraction Ior many people.
For instance, not less than 15 Iuel stations are sited on the 27 km Kumasi-OIIinso Road in the
Ashanti region. New stations are also being established in the city centers.

etail Industry: History
The retail industry emerged in the US in the eighteenth century, restricted to general stores.
Specialty stores were developed only in those areas that had a population oI above 5,000.
Supermarkets Ilourished in the US and Canada with the growth oI suburbs aIter World War II.
The modern retail industry is booming across the world. Revenues Irom retail sales in the US
alone stood at $4.48 trillion in 2007, according to a report by the US Census Bureau.
Economic Indicators: Retail Sales Report

Printer Iriendly version (PDF Iormat)
By Ryan Barnes

Release
Date:
On or around the 13th oI the month
Release
Time:
8:30am Eastern Standard Time
overage: Previous month's data
Released
By:
Census Bureau and the U.S. Department oI
Commerce
Latest
Release:
http://www.census.gov/svsd/www/advtable.html


Background
Retail Sales is very closely watched by both economists and investors. This indicator tracks the
dollar value oI merchandise sold within the retail trade by taking a sampling oI companies
engaged in the business oI selling end products to consumers. Both Iixed point-oI-sale businesses
and non-store retailers (such as mail catalogs and vending machines) are used in the data sample.
Companies oI all sizes are used in the survey, Irom Wal-Mart to independent, small-town
businesses. (For related reading, see Using Consumer Spending As A Market Indicator.)

The data released will cover the prior month's sales, making it a timely indicator oI not only the
perIormance oI this important industry (consumer expenditures generally make up about two-
thirds oI total gross domestic product), but oI price level activity as a whole. Retail Sales is
considered a coincident indicator, in that activity reIlects the current state oI the economy. It is
also considered a vital pre-inIlationary indicator, which creates the biggest interest Irom Wall
Street watchers and the ConIerence Review Board,which tracks data Ior the Federal Reserve
Board's directors.

The release will contain two components: a total sales Iigure (and related change Irom the
previous month), and one "ex-autos", as the large ticket price and historical seasonality oI auto
sales can throw oII the total Iigure disproportionately.

hat it eans for nvestors
The release oI the Retail Sales Report can cause above-average volatility in the stock market. Its
clarity as a predictor oI inIlationary pressure can cause investors to rethink the likelihood oI Fed
rate cuts or hikes, depending on the direction oI the underlying trend. For example, a sharp rise
in retail sales in the middle oI the business cycle may be Iollowed by a short-term hike in interest
rates by the Fed in the hope oI curbing possible inIlation. This would cause investors to sell
bonds (causing yields to rise), and could pose problems Ior stocks as well, as inIlation causes
decreased Iuture cash Ilows Ior companies.

II retail sales growth is stalled or slowing, this means consumers are not spending at previous
levels, and could signal a recession due to the signiIicant role personal consumption plays in the
health oI the economy.

One oI the most important Iactors investors should note when viewing the indicator is how Iar
oII the reported Iigure is Irom the so-called consensus number, or "street number". In general,
the stock market does not like surprises, so a Iigure that is higher than expected, even when the
economy is humming along well, could trigger selling oI stocks and bonds, as inIlationary Iears
would be deemed higher than expected.





Retail companies themselves can be especially volatile with the release oI this widely read
industry report. The release data will show the sales perIormance oI all the component sectors
within retail (such as electronics retailers and restaurants), allowing investors to peek in on
relative "pockets oI strength" within the overall Iigures. An investor holding stocks in retail can
see how his or her holdings are perIorming relative to the sector as a whole - a valuable analysis
regardless oI overall market conditions.

$trengths:
O The retail sales data is extremely timely, and is released only two weeks aIter the month
it covers.
O The data release is robust; investors can download a Iull breakout oI component sectors,
as well as spreadsheet historical data to examine trends.
O Retail sales reports get a lot oI press. It's an indicator that is easy to understand
and relates closely to the average consumer.
O A revised report comes out later (two to three months on average), amending any errors.
O Analysts and economists will take out volatile components to show the more underlying
demand patterns. The most volatile components are autos, gas prices and Iood prices.
O Data is adjusted seasonally, monthly and Ior holiday diIIerences month to month.
eaknesses:
O Revisions to the report (released about two months aIter the advance report) can be quite
large, and the sample size is relatively small compared to the number oI retailers opening
their doors to consumers.
O Retail sales data is oIten volatile Irom month to month, which makes trend-spotting
diIIicult.
O The indicator is based on dollars spent and does not account Ior inIlation. This makes it
diIIicult Ior individual investors to make decisions based on the raw data.
O Does not account Ior retail services, only physical merchandise. The U.S. is an
increasingly service-based economy, so not all retail "activity" is captured.

The losing Line
Retail Sales is one oI the big ones - a report that can shed a lot oI light on the economy. It
provides detailed industry inIormation and can really move the market. Investors will best be
served by waiting Ior the analysts to sort through the report, removing any overly volatile
components, and drawing conclusions Irom there. For owners oI individual retail stocks, look at
the sector growth rates to determine the relative perIormance oI individual stocks held in a
particular secto

Read more: http://www.investopedia.com/university/releases/retailsales.asp#ixzz1aOw2XWhF