Retail Sales Indicators

Retail Sales are a good economic indicator that tracks consumer demand for finished goods by measuring the purchases of durable and nondurable goods. A leading macroeconomic indicator, it determines the pulse of the economy, and its projected path toward expansion or contraction. It also signifies healthy retail sales figures in the equity markets — indicating higher sales translating to higher earnings. With consumer spending accounting for almost 70% of U.S. GDP, the three most important retail metrics or key performance indicators include total sales, store traffic, and net profit margin. Some of these KPIs also induce conversion rate, average transaction value, and break even point.