NRSInsights’ July 2024 Retail Same-Store Sales Report

Rhea-AI Summary

NRSInsights released its July 2024 Retail Same-Store Sales Report, revealing a 1.2% year-over-year increase in same-store sales. Key highlights include:

- Unit sales increased 2.2% from July 2023
- Average transactions per store decreased 0.6% year-over-year
- Prices for top 500 items increased 2.5% year-over-year
- Three-month same-store sales (May-July 2024) increased 3.0% compared to 2023

The NRS network comprised 32,100 active terminals nationwide as of July 31, 2024. Notable trends included growth in Tequila, Prepared Cocktails, and Non-Alcoholic Beer sales, while Energy Drinks and Vape sales declined. Hurricane Beryl impacted sales in Texas markets. The report is based on approximately 194 million transactions from 18,700 stores.

Positive

• Same-store sales increased 1.2% year-over-year
• Unit sales increased 2.2% compared to July 2023
• Three-month same-store sales (May-July 2024) increased 3.0% year-over-year
• NRS network expanded to 32,100 active terminals nationwide
• NRS POS terminals processed $19.4 billion in sales through 1.4 billion transactions in the past 12 months

Negative

• Same-store sales growth moderated, continuing a year-long trend
• Average number of transactions per store decreased 0.6% year-over-year
• Hurricane Beryl caused double-digit sales decreases in coastal and Southeast Texas markets
• Sales of Energy Drinks, Chocolates and Confections, Vape, and sweet snacks declined

Insights

Market Research Analyst

The NRSInsights July 2024 retail same-store sales report provides valuable insights into consumer spending trends in independent, urban retail stores. The 1.2% year-over-year increase in same-store sales indicates modest growth, but it's a significant deceleration from June's 5.1% increase. This slowdown, coupled with a 1.9% month-over-month decrease, suggests potential economic headwinds.

The 2.5% increase in average prices for top items, up from 1.1% in June, signals rising inflationary pressures. However, the 2.2% increase in units sold shows resilient consumer demand. The 0.6% decrease in transactions per store might indicate fewer shopping trips but larger basket sizes.

Notably, the NRS network has outperformed the U.S. Commerce Department's retail data by 2.3 percentage points on average over the past year, highlighting the strength of independent urban retailers in this economic climate.

Financial Analyst

The July 2024 retail data presents a mixed financial picture. While the $19.4 billion in sales processed through NRS terminals over the past year demonstrates substantial volume, the slowing growth rate is concerning. The 3.0% three-month same-store sales increase, down from 6% a year ago, suggests a cooling trend that investors should monitor closely.

The impact of external factors like Hurricane Beryl on regional sales highlights the vulnerability of retail to environmental disruptions. This underscores the importance of geographical diversification in retail networks.

The shift in product sales trends, with growth in categories like Tequila and Non-Alcoholic Beer, while Energy Drinks and Vape sales declined, indicates changing consumer preferences. Investors should consider how these trends might affect CPG companies and retailers focused on these product categories.

Retail Industry Expert

The NRSInsights report offers important data on the health of independent urban retailers. The network's growth to 32,100 active terminals across 27,800 stores demonstrates the resilience of small-format, independent retail in urban areas. This expansion provides a robust dataset for analyzing consumer behavior in these markets.

The moderation in same-store sales growth aligns with broader economic trends but remains positive. The outperformance compared to U.S. Commerce Department data suggests that these independent retailers are adapting well to current market conditions.

The shift in product preferences, particularly the growth in Tequila and Prepared Cocktails sales, indicates evolving consumer tastes. Retailers and CPG companies should take note of these trends to optimize their product mix and marketing strategies. The return of beverage sales to trendlines after June's heatwave-induced spike highlights the importance of weather-related factors in short-term sales patterns.

July same-store sales increased 1.2% year-over-year

NEWARK, N.J., Aug. 08, 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 July 2024.

As of July 31, 2024, the NRS retail network comprised approximately 32,100 active terminals nationwide, scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, tobacco, and sundries sellers nationwide, predominantly serving urban consumers.

July Retail Same-Store Sales Highlights

(Same-store sales, unit sales, transactions, and average price data throughout this release refer to July 2024 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.)

• Same-store sales increased 1.2% from a year earlier (July 2023). In the previous month (June 2024), same-store sales had increased 5.1% compared to June 2023.
  
  

• Same-store sales decreased 1.9% compared to the previous month (June 2024). Same-store sales in June 2024 had increased 1.6% compared to the previous month (May 2024).
• For the three months ended July 31 2024, same-store sales increased 3.0% compared to the three months ended July 31, 2023.
• The number of units sold increased 2.2% from a year earlier (July 2023). In the previous month (June 2024), the number of items sold had increased 5.5% compared to June 2023.
• The average number of transactions per store decreased 0.6% from a year earlier (July 2023). In the previous month (June 2024), the average number of transactions had increased 2.8% compared to June 2023.
• A dollar-weighted average of prices for the top 500 items purchased during July 2024 increased 2.5% year-over-year, an increase from the 1.1% year-over-year increase recorded in June 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 2.3% 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)

“The rate of same-store sales growth moderated across the NRS network in July, continuing a year-long trend. The year-over-year rate of nominal increase has decreased from over 6% for the three months ended July 2023 to 3% for the same period this year. Inflation, meanwhile, as measured by the weighted price per unit of our 500 most frequently sold items, remained relatively subdued at 2.5%, although over the past two months it has increased off the lows earlier in the year.

“July’s nationwide results were modestly impacted by Hurricane Beryl, which triggered double digit sales decreases versus July 2023 in coastal and Southeast Texas markets, including Corpus Christi and Houston. Beryl, which disrupted distribution throughout the impacted regions, also caused widespread, extended-term power outages.

“On par with previous months, we continued to see notable growth in sales of Tequila, Prepared Cocktails, Smokeless Tobacco and Non-Alcoholic Beer during July, while sales of Energy Drinks, Chocolates and Confections, Vape, and sweet snacks such as packaged brownies, doughnuts, cakes, and pies, all declined.

“Although the U.S. continued to swelter under protracted heatwaves during the month, the unusually robust sales levels of Packaged Non-Alcoholic Beverages that we measured in June were not sustained for a second month. In July, Carbonated Soft Drinks, Bottled Water, and Sports Drinks volumes all returned to their respective trendlines.”

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 July 2024 with July 2023 are derived from approximately 194 million transactions processed through the approximately 18,700 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of July 2024 with June 2024 are derived from approximately 248 million transactions processed through approximately 26,700 stores.

Same-store data comparisons for the three months ended July 31, 2024 with the year-ago three months are derived from approximately 549 million scanned transactions processed through the stores that were in the NRS network in both quarters.

NRS POS Network

The NRS network comprises approximately 32,100 active POS terminals operating in approximately 27,800 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 $19.4 billion in sales through approximately 1.4 billion transactions during the twelve months ended July 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

• National Retail Solutions
• National Retail Solutions

FAQ

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

NRSInsights reported a 1.2% year-over-year increase in same-store sales for July 2024.

How many active terminals did the NRS retail network have as of July 31, 2024?

As of July 31, 2024, the NRS retail network comprised approximately 32,100 active terminals nationwide.

What was the year-over-year price increase for the top 500 items in July 2024?

A dollar-weighted average of prices for the top 500 items purchased during July 2024 increased 2.5% year-over-year.

How did Hurricane Beryl affect NRSInsights' July 2024 sales data?

Hurricane Beryl triggered double-digit sales decreases versus July 2023 in coastal and Southeast Texas markets, including Corpus Christi and Houston, modestly impacting nationwide results.

What was the total sales value processed through NRS POS terminals in the 12 months ending July 31, 2024?

NRS' POS terminals processed $19.4 billion in sales through approximately 1.4 billion transactions during the twelve months ended July 31, 2024.