Winners and losers from the September Retail Sales report

U.S. retail sales climbed more than expected in September, with a 0.4% month-over-month increase. Core retail sales were up 0.5% vs. +0.1% consensus and +0.2% in August.

The food and beverage store category (+1.0% M/M, +2.5% Y/Y) stood out, with solid marks that could bode well for large chains such as Kroger (KR), Albertsons Companies (ACI), and Sprouts Farmers Market (SFM). The clothing & clothing accessories store category (+1.5% M/M, +3.5% Y/Y) was also a surprising outperformer. Chains such as American Eagle Outfitters (AEO), Urban Outfitters (URBN), and Gap (GAP) may have benefited from early holiday shopping events. The restaurant category was also solid (+1.0% M/M, +3.7%) during a month that saw more promotions for fast-food chains such as McDonald’s (MCD), Burger King (QSR), and Taco Bell (YUM). A surprise decliner for the month was the electronics store category (-3.3% M/M, -4.6% Y/Y), which could be a negative read-through for Best Buy (BBY). The nonstore retailers category slowed down, with just a 0.4% M/M increase as Amazon (AMZN), Etsy (ETSY), Wayfair (W), and the rest of the group faced difficult comparisons to a year ago.