NRSInsights’ March 2024 Retail Same-Store Sales Report

Rhea-AI Summary

NRSInsights reported a 7.2% increase in same-store sales for March 2024 compared to the previous year. The average prices rose by 0.7% year-over-year, with notable growth in beverage categories and cooking/baking items. The NRS network comprises around 29,800 active terminals serving various retail outlets nationwide.

Insights

Market Research Analyst

The reported 7.2% year-over-year increase in same-store sales for March 2024 is a significant indicator of consumer spending resilience, especially when compared to the 3.5% increase in February. This rise suggests a robust consumer market, which can be an attractive point for investors looking at retail sector performance. The moderate price increase of 0.7% despite inflationary concerns indicates effective cost management and possibly strong pricing power within the retail network. However, the specific decline in Energy Drinks and Candy categories could suggest a shift in consumer preferences or a reaction to price changes in raw materials like cocoa and sugar.

From a market research perspective, the divergence between the NRS network's performance and the US Commerce Department's data suggests that NRS's focus on urban, independent retailers might be capturing a segment of the market that is outperforming broader retail trends. This could be due to demographic factors or shopping preferences unique to urban consumers. Investors may find opportunities in companies that cater to or operate within similar demographics.

Economist

The data indicating that the number of items sold and average transactions per store have increased is a positive sign of economic activity. The growth in unit sales and transaction volume by 7.8% and 4.6% respectively points to a healthy demand side in the economy, despite any inflationary pressures. It is noteworthy that the dollar-weighted average price increase is relatively low, which could be due to subdued inflation or competitive pricing strategies. The fact that this increase is lower than the previous month's suggests a potential easing of inflation or strategic price adjustments by retailers.

Looking at the broader economic implications, strong retail sales figures can contribute to GDP growth and indicate consumer confidence. However, it's important to monitor if this growth is sustainable or if it's driven by short-term factors such as seasonal variations. The mention of Easter's impact on sales is a case in point. An economist would also advise examining underlying factors such as employment rates and wage growth to assess whether this retail growth aligns with overall economic trends.

Financial Analyst

The reported outperformance of NRS network's same-store sales over the US Commerce Department's retail data could have implications for stock valuations within the retail sector. Investors often look for companies with strong same-store sales growth as it typically indicates underlying business health and potential for revenue expansion. The reported growth, especially in a period where inflationary pressures are present, may signal operational efficiency and market adaptability, which are key factors in investment decision-making.

While the report provides a positive outlook, a financial analyst would caution investors to consider the sustainability of this growth. The data lacks adjustments for inflation and seasonal buying patterns, which are important for a holistic view of performance. Additionally, the decline in certain categories like Candy in March, despite a seasonal event like Easter, raises questions about consumer discretionary spending and could be a red flag for certain sub-sectors within retail. It's essential to analyze these trends within the context of broader economic conditions and sector-specific challenges before making investment decisions.

March same-store sales jumped 7.2% year-over-year, the highest rate of increase since June 2023

Inflationary pressures remained subdued - average prices increased 0.7% year-over-year

NEWARK, N.J., April 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 March 2024.

As of March 31, 2024, the NRS retail network comprised approximately 29,800 active terminals scanning purchases at independent retailers including bodegas, convenience stores, liquor stores, grocers, tobacco, and sundries sellers nationwide, predominantly serving urban consumers.

March Retail Same-Store Sales Highlights

(Same-store sales, unit sales, transactions, and average price data throughout this release refer to March 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 7.2% from a year earlier (March 2023). In February 2024, average sales had increased 3.5% compared to February 2023.
• Same-store sales per calendar day increased 6.6% compared to February 2024. Same-store sales per calendar day in February 2024 had increased 7.4% compared to January 2024.
• For the three months ended March 31, 2024, same-store sales per calendar day increased 3.3% compared to the three months ended March 31, 2023.
• The number of items sold increased 7.8% compared to March 2023. In February 2024, the number of items sold increased 4.4% per calendar day compared to February 2023.
• The average number of transactions per store increased 4.6% compared to March 2023. In February 2024, the average number of transactions per calendar day had increased 2.0% compared to February 2023.
• A dollar-weighted average of prices for the top 500 items purchased increased 0.7% year-over-year, a decrease from the 1.2% year-over-year increase recorded in February 2024.

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

“The NRS Network’s same-store sales were again strong in March, providing further evidence of continued resilience in consumer spending. Dollars, units, and traffic all tallied solid increases versus the year ago, while prices for our most popular items over the same period increased less than one percent. Standouts included increased sales of beverage categories across most alcoholic and non-alcoholic sub-categories with the notable exception of Energy Drinks, which were flat for the second consecutive month, breaking an extended growth trend.”

“Turning to select seasonal trends…while same store sales for the Candy category rebounded in February with sequential and year-over-year gains, the momentum was not sustained in March. Candy unit sales decreased ~7% and dollars declined ~2% compared to March 2023. This is notable because Easter, which typically provides Candy with a strong seasonal lift, was in March this year, as opposed to in April in 2023. More granularly, within the Candy category, the increased price of chocolate and the barrage of media coverage on the spiking prices of cocoa and sugar likely contributed to the significant decreases in Chocolate and Confectionary sales this year. Many cooking and baking categories, on the other hand, enjoyed strong March sales versus the year ago, likely reflecting Easter timing.”

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 4.5% percentage points, on average.

The NRSInsights data have not been adjusted to reflect inflation, demographic distributions, seasonal buying patterns, item substitution, 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.

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 March 2024 with March 2023 are derived from approximately 172 million transactions processed through the 17,336 stores on the NRS network that scanned transactions in both months. Same-store data comparisons of March 2024 with February 2024 are derived from approximately 216 million transactions processed through 24,745 stores.

Same-store data comparisons for the three months ended March 31, 2024 with the year-ago three months are derived from approximately 460 million scanned transactions processed through the stores that were in the NRS network in both quarters.

NRS POS Network

The NRS network comprises approximately 29,800 active POS terminals operating in approximately 25,900 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 and in 197 of the 210 designated market areas (DMAs) in the United States. NRS’ POS terminals have processed $18.2 billion in sales through approximately 1.3 billion transactions during the twelve months ended March 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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• National Retail Solutions

FAQ

What was the percentage increase in same-store sales for March 2024 compared to March 2023?

Same-store sales increased by 7.2% from March 2023 to March 2024.

How many active terminals are there in the NRS network?

The NRS network comprises approximately 29,800 active terminals.

What was the increase in the number of items sold compared to March 2023?

The number of items sold increased by 7.8% compared to March 2023.

What was the year-over-year increase in average prices for the top 500 items purchased?

The average prices for the top 500 items purchased increased by 0.7% year-over-year.