Sales were higher on a year-over-year basis, led by a $4.8 billion, or 10.2%, increase in non-store sales. Vehicles and parts were a close second with a $3.5 billion, or 3.7%, rise in sales, followed by a $3.0 billion, or 10.8%, increase in building and garden supplies sales . Thus, non-store sales were a major driver in sales on both a month-ago and year-ago basis, but vehicles and parts, although strong year-over-year, have been weak on a monthly basis recently. The largest dollar decline in sales was seen in department stores, where sales were down $487 million, or 3.7%. However, the biggest percentage decline was in sports and hobby stores sales, down 4.7% from a year ago.
Despite this weak report, along with other weak May data, the Federal Reserve raised interest rates. It may be a costly move.