December retail sales came in weaker than expected, but the biggest disappointment came from electronic store sales. They were downright dismal.
While general sales (total retail and food service) were up 7.7% from last year, electronic stores rose a mere 0.4%.
Retail rose 7.9%, and motor vehicle and parts dealers were up 9.9% in the same time period. Furniture and home furnishing stores reported a 1.9% gain.
Goldman Sachs explains
Business Insider captured Goldman Sach's explanation for weak electronic sales: "The weaker-than-expected retail sales result largely reflected declines in sales by electronics stores and "non-store retailers," which includes online sales."
Another reason is "a payback" from iPhone sales. Apple's iPhone 4S is credited for the surge in electronic sales in October and November, so it's reasonable the same consumers are paring back their electronic spending in the months following. In addition, an "aggressive promotional activity in November by some electronics retailers could possibly explain this pattern."
Business Section: Investing Ideas
Interested in tracking the trends affecting electronics stores? We've compiled a list of major electronic stores listed on U.S. markets. For each stock, we'll list the performance over the last year.
Use this list as a starting point for your own analysis. List sorted by performance over the last year. (Click here to access free, interactive tools to analyze these ideas.)
3. Best Buy
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
List compiled by Eben Esterhuizen, CFA. Kapitall's Eben Esterhuizen and Rebecca Lipman do not own any of the shares mentioned above. Data sourced from Finviz.