Pockets of strength in the retail sales report included personal care, e-commerce, and electronics

Retail sales topped expectations in August by rising 0.1% month-over-month to $710.8 billion. On a year-over-year comparison, retail sales rose 2.1%. Core retail sales were up 0.1% month-over-month vs. +0.3% consensus.

Categories showing strength included health & personal care stores, with a 0.7% month-over-month and 3.5% year-over-year increase. Walgreens Boots Alliance (WBA) and Ulta Beauy (ULTA) are two retailers that may have benefited. The miscellaneous store retailers, which includes Best Buy (BBY), also saw a solid 1.7% month-over-month and 10.7% year-over-year increase. The nonstore retailers category that includes Amazon (AMZN), Wayfair (W), and Etsy (ETSY) was up 1.4% month-over-month and 7.8% year-over-year. Meanwhile, laggards included the department stores category, with a 1.1% month-over-month decline and 2.1% year-over-year drop. Those marks do not bode well for Macy’s (M), Nordstrom (JWN), and Kohls (KSS). The building equipment and garden equipment category also saw a sequential sales drop in August, which may impact Home Depot (HD) and Lowe’s (LOW).

The closely watched grocery store category was mixed for the month (-0.6% M/M, +1.5% Y/Y). Notably, grocery store stocks Kroger (KR) +23%, Sprouts Farmers Market (SFM) +122%, Natural Grocers by Vitamin Cottage (NGVC) +83%, Weis Markets (WMK) +10%, and Village Super Market (VLGEA) +26% all have positive share price gains for the year. Food prices have become a hot political issue with the U.S. election less than two months away. Another major wildcard in the grocery store sector is the FTC case to block the merger between Albertsons Companies (ACI) and Kroger (KR). The trial is expected to wrap up on Tuesday.