Retail Inventories/Sales Ratio: Department Stores

IR4522USN • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

2.51

Year-over-Year Change

1.62%

Date Range

1/1/1992 - 5/1/2025

Summary

The Retail Inventories/Sales Ratio for Department Stores measures the relationship between inventory levels and sales at U.S. department stores. It provides insights into consumer demand and retailers' inventory management strategies.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Retail Inventories/Sales Ratio is an important economic indicator that tracks the balance between supply and demand in the retail sector. It compares the value of unsold goods (inventories) to the value of goods sold, offering a gauge of retailers' inventory efficiency and consumers' purchasing habits.

Methodology

The data is collected and calculated by the U.S. Census Bureau through monthly surveys of department stores.

Historical Context

Policymakers and analysts use this ratio to assess the health of the retail industry and overall consumer confidence.

Key Facts

  • The ratio reached a high of 1.70 in April 2020 during the COVID-19 pandemic.
  • A higher ratio indicates department stores have built up excess inventory relative to sales.
  • The long-term average ratio is around 1.50.

FAQs

Q: What does this economic trend measure?

A: The Retail Inventories/Sales Ratio for Department Stores measures the relationship between inventory levels and sales at U.S. department stores.

Q: Why is this trend relevant for users or analysts?

A: This ratio provides insights into consumer demand and retailers' inventory management strategies, offering a gauge of the health of the retail industry.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the U.S. Census Bureau through monthly surveys of department stores.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this ratio to assess consumer confidence and the overall health of the retail sector.

Q: Are there update delays or limitations?

A: The data is released monthly with a typical 2-month delay.

Related Trends

Citation

U.S. Federal Reserve, Retail Inventories/Sales Ratio: Department Stores (IR4522USN), retrieved from FRED.