US retail sales were up 3.9 per cent during the first half of 2017. Still consumers are measuring their dollars. Most people were not frequenting traditional mall stores. Instead, during the first quarter of this year, online sites and off-price retailers were gaining retail territory.

Store traffic dropped 8.3 per cent in June over last June. This was the largest decline in three months. E-commerce will see double-digit growth with back-to-school sales jumping nearly 16 per cent this year, which makes up about 8.6 per cent of total back-to-school sales. Last year e-commerce sales for the back-to-school season rose 7.8 per cent.

Purchases of clothing and accessories may rise 10 per cent over last year. Hot items are expected to be casual wear, school uniforms, handbags and accessories. Stores missing their earnings estimates for the first quarter were Macy’s, Abercrombie & Fitch, Urban Outfitters, Kate Spade, American Eagle Outfitters, Chico’s and Express.

Consumers plan to shop at mass merchants more and less at department stores and specialty retailers. The unemployment rate in the United States was at a very low 4.4 per cent in June, up slightly from a 16-year low of 4.3 per cent in May. Private sector wages rose by 2.5 per cent this June compared to the same month last year and housing prices continued to rise with low supply and high demand.