Report: Retailers see 7.3% decrease in sales in BTS season

SAN JOSE, Calif. — Retail analytic company RetailNext on Friday announced its monthly Retail Performance Pulse, showing a 7.3% year-over-year decrease in sales and a 9.9% decline in traffic at physical stores for August.

Retailers should not be surprised, according to Shelley Kohan, vice president of retail consulting at RetailNext.

"It not only continues the well-established trend retailers have seen this year, but it also reflects the changing nature of shoppers and their new shopping journeys," Kohan said.

But in-store shoppers are buying at a higher rate, according to increases in conversion and average transaction value.

A number of factors contributed to the dip in in-store retail, including a late Labor Day and a dip in disposable income due to automobile sales this month, Kohan said.

Driven by appeal to customers of sales tax-free holidays, the first two weeks of August were the best-performing, while the last week was the worst-performing, according to RetailNext.

"While August was a tough month for many stores, indicators suggest lots of opportunities for holiday as employment, income and interest rates remain positive,” Kohan said. “It will be important for retailers to maximize this holiday season, as Holiday 2016 will be challenging, especially with distractions around the presidential election."