“In spite of economic concerns, consumers are still demonstrating their ability to spend,” said Rosalind Wells, NRF chief economist. “With gas prices continuing to rise and the slowdown in the housing market, we expect consumers to become more conservative as the year goes on.”

March retail sales released by the U.S. Commerce Department show that total retail sales (including non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.6 percent seasonally adjusted from February, and increased 7.9 percent unadjusted year-over-year. These increases were impacted by consumers’ investments in their homes and properties.

Many retailers experienced year-over-year growth. However, no category performed better than building material and garden equipment and supplies dealers. Sales in this category increased an astounding 17.4 percent unadjusted year-over-year. Furniture and home furnishings stores also benefited from consumers’ buying power, with sales rising 10.8 percent unadjusted over last March. Health and personal care stores also were among the top retail performers, with increases of 5.9 percent unadjusted from the prior year, as were sporting goods, hobby, book and music stores, with increases of 7.9 percent unadjusted from last year. [June 2006 PET AGE]