While consumers continue to shun department stores in favor of purchasing merchandise online or consumer services like entertainment and travel, they continue to spend enormously on their homes.
Recently released Commerce Department data indicate that spending on building supplies and gardening equipment expanded six point four percent in July compared to a year ago. Purchases on home furnishings grew by a solid four point two percent.
As indicated by CNNMoney, these positive readings on consumer outlays took place in the context of Macy’s recent announcement that it would shutter one hundred department stores due to weal sales. Macy’s is hardly alone.
Other retailers like the Gap, JCPenney’s, Joseph A Bank and Kohl’s have announced that they are also closing stores. Americans are not just furnishing and improving their homes, they are buying more of them.
According to the National Association of Realtors, home sales were up four point two percent during the second quarter and prices for those homes expanded by nearly 5 percent. This is welcome news for retailers like Home Depot and Lowe’s.
