NRSInsights’ August 2024 Retail Same-Store Sales Report

Rhea-AI Summary

NRSInsights released its August 2024 Retail Same-Store Sales Report, showing a 5.1% year-over-year increase in same-store sales. Key highlights include:

• Units sold increased 4.7% year-over-year
• Average transactions per store rose 1.8% year-over-year
• Average prices for top 500 items increased 3.5% year-over-year

The report noted strong growth in back-to-school categories and baking supplies. NRS' network comprises 32,300 active POS terminals in approximately 28,100 independent retail stores, processing $19.8 billion in sales through 1.4 billion transactions in the past 12 months.

Positive

• Same-store sales increased 5.1% year-over-year
• Units sold increased 4.7% year-over-year
• Average number of transactions per store increased 1.8% year-over-year
• Strong growth in back-to-school categories and baking supplies
• NRS network processed $19.8 billion in sales through 1.4 billion transactions in the past 12 months

Negative

• Candy/Gum/Mints and Sweet Snacks categories continued to decline year-over-year
• Inflationary pressure increased to 3.5% in August, up from 2.5% in July

Financial Analyst

The August 2024 retail same-store sales report from NRSInsights reveals a significant improvement in the retail sector. The 5.1% year-over-year increase in same-store sales is a substantial jump from July's 1.2% growth, indicating a robust back-to-school shopping season. This uptick, coupled with a 4.7% increase in units sold and a 1.8% rise in transactions per store, suggests strong consumer demand.

The 3.5% increase in average prices of top 500 items, up from 2.5% in July, points to persistent inflationary pressures. However, excluding tobacco products, the underlying inflation rate remains stable at 2.5%. This data implies that retailers are successfully passing on higher costs to consumers without significantly dampening demand.

NRS network's outperformance of the U.S. Commerce Department's retail data by an average of 3 percentage points over the past year highlights the strength of independent, urban retailers in the current economic climate. This trend could indicate a shift in consumer shopping habits towards local, smaller format stores.

Market Research Analyst

The August report unveils intriguing consumer behavior shifts. The surge in school-related categories like Office Supply and Writing Tools, alongside the growth in Cookie Snacks and Variety Packs, reflects a return to pre-pandemic routines. This trend suggests a normalization of daily life and could indicate broader economic recovery.

Interestingly, the continued decline in Candy/Gum/Mints and Sweet Snacks categories year-over-year might signal a shift towards healthier eating habits or budget-conscious decisions amid inflation. The rise in Baking Staples and related categories could indicate a persistent trend of at-home cooking, possibly as a cost-saving measure.

The robust performance of urban, independent retailers compared to broader retail data suggests a potential long-term shift in shopping preferences. This could have significant implications for CPG companies' distribution strategies and urban commercial real estate markets. The data underscores the importance of these small-format stores in reaching diverse, urban consumers.

August same-store sales increased 5.1% year-over-year

NEWARK, N.J., Sept. 09, 2024 (GLOBE NEWSWIRE) -- NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative same-store sales results for August 2024.

As of August 31, 2024, the NRS retail network comprised approximately 32,300 active terminals nationwide, scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, tobacco, and sundries sellers nationwide, predominantly serving urban consumers.

August Retail Same-Store Sales Highlights

(Same-store sales, unit sales, transactions, and average price data throughout this release refer to August 2024 and are compared to August 2023 unless otherwise noted. All comparisons are provided on a “per calendar day” basis to remove from consideration variability in the number of days per month.)

• SALES 
  • Same-store sales increased 5.1% year-over-year. In the previous month (July 2024), same-store sales had increased 1.2% year-over-year.
  • Same-store sales increased 1.7% compared to the previous month (July 2024). Same-store sales in July 2024 had decreased (1.9)% compared to the previous month (June 2024).
  • For the three months ended August 31, 2024, same-store sales increased 3.2% compared to the same three months a year ago.
• UNITS SOLD
  • The number of units sold increased 4.7% year-over-year. In the previous month (July 2024), the number of items sold had increased 2.2% year-over-year.
  • Units sold increased 1.3% compared to the previous month (July 2024). Units sold in July 2024 had decreased (1.7)% compared to the previous month (June 2024).
• TRANSACTIONS PER STORE
  • The average number of transactions per store increased 1.8% year-over-year. In the previous month (July 2024), transactions decreased (0.6)% year-over-year.
  • Transactions increased 1.5% compared to the previous month (July 2024). Transactions in July 2024 had decreased (1.9)% compared to the previous month (June 2024).
• AVERAGE PRICES
  • A dollar-weighted average of prices for the top 500 items purchased during August 2024 increased 3.5% year-over-year, an increase from the 2.5% year-over-year increase recorded in July 2024.

Retail Trade Comparative Data

The table below provides historical comparative data with the U.S. Commerce Department’s Advance Monthly Retail Trade same-store sales data excluding food service:

Over the past twelve months, the NRS network’s three-month moving average same-store sales have outpaced the US Commerce Department’s Advance Monthly Retail Trade data, excluding food services, by 3.0% percentage points, on average.

The NRSInsights data in the chart above have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, days per month, or other factors that may facilitate comparisons to other periods, to other same-store retail sales data, or to the U.S. Commerce Department’s retail data.

Commentary from Suzy Silliman (SVP, Data Strategy and Sales at NRS)

“NRS’ year over year rate of same-store sales growth jumped to 5.1% in August after a weak July.

“August is back-to-school month for many universities and K-12 districts. We saw not only the expected sales growth versus July but also a robust increase versus August 2023, most notably in school-related categories including Office Supply, Writing Tools, and Computer/Printer accessories.

“Cookie Snacks and Variety Packs, convenient options for school lunches, also realized strong year-over-year growth, as did sales of Baking Staples, Extracts/Herbs/Spices/Seasoning, Baking Mixes and Baking Supplies.

“On the other hand, sales of the Candy/Gum/Mints and Sweet Snacks categories continued to decline year-over-year.

“While our measure of inflationary pressure increased in August for the second consecutive month, rising to 3.5%, that increase was largely driven by a spike in the prices of tobacco products. Absent that, the underlying rate of year-over-year increase was 2.5%, the same as July.”

NRSInsights Reports

The NRSInsights monthly Same-Store Retail Sales Reports are intended to provide timely topline data reflective of sales at NRS’ network of independent, predominantly urban, retail stores.

Same-store data comparisons of August 2024 with August 2023 are derived from approximately 196 million transactions processed through the approximately 19,100 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of August 2024 with July 2024 are derived from approximately 253 million transactions processed through approximately 27,000 stores.

Same-store data comparisons for the three months ended August 31, 2024 with the year-ago three months are derived from approximately 557 million scanned transactions processed through those stores that were in the NRS network in both quarters.

NRS POS Network

The NRS network comprises approximately 32,300 active POS terminals operating in approximately 28,100 independent retail stores. Its platform predominantly serves small-format, independent, retail stores including convenience stores, bodegas, liquor stores, grocers, tobacco, and sundries sellers. The network includes retailers in all 50 states as well as the District of Columbia, and in 200 of the 210 designated market areas (DMAs) in the United States. NRS’ POS terminals processed $19.8 billion in sales through approximately 1.4 billion transactions during the twelve months ended August 31, 2024.

About National Retail Solutions (NRS):

National Retail Solutions operates the largest point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers nationwide. Retailers utilize NRS offerings to process transactions and effectively manage their businesses. Consumer packaged goods (CPG) suppliers, brokers, analytics firms, and advertisers access the terminal’s digital display network to reach these retailers’ predominantly urban, multi-cultural shopper base, and to harness transaction data-based learnings to identify growth opportunities and measure execution and returns on marketing investment. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

NRSInsights Contact:
Suzy Silliman
SVP, Data Strategy and Sales at NRS
National Retail Solutions
suzy.silliman@nrsplus.com

IDT Corporation Contact:
Bill Ulrey
william.ulrey@idt.net

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Attachments

• NRS Insights - Sales
• NRS Insights - Retail

FAQ

What was the year-over-year same-store sales increase for NRSInsights in August 2024?

NRSInsights reported a 5.1% year-over-year increase in same-store sales for August 2024.

How many active POS terminals does the NRS network have as of August 2024?

As of August 2024, the NRS network comprises approximately 32,300 active POS terminals operating in about 28,100 independent retail stores.

What was the year-over-year increase in units sold for NRSInsights in August 2024?

The number of units sold increased 4.7% year-over-year in August 2024 according to the NRSInsights report.

How did average prices change for NRSInsights' top 500 items in August 2024?

A dollar-weighted average of prices for the top 500 items purchased during August 2024 increased 3.5% year-over-year.