This morning the Australian Bureau of Statistics released its retail sales data for the month of April.
According to the data, sales climbed 0.4% month-on-month to $26.56 billion on a seasonally adjusted basis, outperforming the market's expectations for a 0.3% rise according to Bloomberg.
Which areas of the retail sector performed well?
The standout area was cafes, restaurants and takeaways retailing which rose 1.3% thanks to unusually warm weather during the month.
This could be good news for the likes of KFC operator Collins Foods Ltd (ASX: CKF), Domino's Pizza Enterprises Ltd (ASX: DMP), and the embattled Retail Food Group Limited (ASX: RFG)
Elsewhere, household goods retailing and food retailing were up 0.7% and 0.3%, respectively, month-on-month. This could be a sign that Nick Scali Limited (ASX: NCK) had a positive trading period.
Which areas didn't perform well?
One area of the retail sector that dragged on proceedings in April was clothing, footwear and personal accessories retailing which fell 0.8% month-on-month.
The warmer weather during the month appears to have put off consumers from buying their winter clothing. Which could be disappointing news for Kathmandu Holdings Ltd (ASX: KMD).
And once again, much to the dismay of Myer Holdings Ltd (ASX: MYR) shareholders, department stores saw sales decrease 0.9% during the month.
Which retail shares should you buy?
Based on this latest retail sales data I think Domino's is the standout pick of those mentioned, especially after its shares recently found favour with brokers.
However, outside this data, I still think retail shares such as Lovisa Holdings Ltd (ASX: LOV) and Premier Investments Limited (ASX: PMV) are buys due to their long-term growth potential from expansions overseas.
Both companies have been doing exceptionally well in international markets this year and I expect more of the same in FY 2019 and beyond.
