Retail abounds as US gets back to business
A series of recent data has revealed just how much the retail landscape has improved since the doom and gloom that came with shutdowns this time last year.
Census data reveals year-over-year spending growth of 51.1 per cent in April, while retail cargo imports have hit record levels, and the National Retail Federation has tipped the US economy could see its fastest growth in more than three decades.
So, with a welcome abundance of good news currently circulating, let’s break down the data to gain a full picture of what’s currently happening in US retail.
April sales illustrate ‘off the chart’ annual growth
This time last year, the US retail sector was grappling with the impact of widespread COVID shutdowns. A year later, Census data illustrates just how much things have improved.
April retail sales are holding steady, declining only slightly after a surge in March, but are up 51.1 per cent since the same time last year.
Commenting on the figures, the National Retail Federation noted the economy and consumer spending have proven to be much more resilient than many feared a year ago.
“Today’s year-over-year numbers are off the charts in some categories, reflecting the disparity between retailers that could remain open a year ago and those that were forced to shut down,” NRF Chief Economist Jack Kleinhenz said.
“Consumers may have tapped the brakes slightly in April compared with March, but it was like going from 100 mph to 85 mph compared with last year.
“The fuel from stimulus checks gave a strong boost to spending in March and the fact that April numbers are very close shows spending is clearly going forward and still strong.”
The NRF’s April figures further illustrate:
- Clothing and clothing accessory stores were down 5.1 per cent month-over-month seasonally adjusted but up 711.3 per cent unadjusted year-over-year.
- Furniture and home furnishings stores were down 0.7 per cent month-over-month seasonally adjusted but up 199.2 per cent unadjusted year-over-year.
- Sporting goods stores were down 3.6 per cent month-over-month seasonally adjusted but up 155 per cent unadjusted year-over-year.
- Electronics and appliance stores were up 1.2 per cent month-over-month seasonally adjusted and up 139.9 per cent unadjusted year-over-year.
- Building materials and garden supply stores were down 0.4 per cent month-over-month seasonally adjusted but up 32.9 per cent unadjusted year-over-year.
- Health and personal care stores were up 1 per cent month-over-month seasonally adjusted and up 24.6 per cent unadjusted year-over-year.
- Online and other non-store sales were down 0.6 per cent month-over-month seasonally adjusted but up 14.8 per cent unadjusted year-over-year.
- General merchandise stores were down 4.9 per cent month-over-month seasonally adjusted but up 13.6 per cent unadjusted year-over-year.
- Grocery and beverage stores were up 0.4 per cent month-over-month seasonally adjusted and up 0.3 per cent unadjusted year-over-year.
Record retail imports
In a bid to cater to the increased product demand, retail cargo imports have hit record levels.
Data from March indicates US ports covered by Global Port Tracker handled 2.27 million twenty-foot equivalent containers that month.
The NRF explains this was 21.2 per cent higher than February and set a new record for the number of containers seen during a single month since NRF began tracking imports in 2002.
They also note volume during the first half of 2021 is expected to be a third higher than last year.
Fastest economic growth since the ‘80s
With businesses reopening and increased consumer confidence, the NRF says the economy is now on firm footing and could see its fastest growth since the 1980s.
“While there is a great deal of uncertainty about how fast and far this economy will grow in 2021, surveys show an increase in individuals being vaccinated, more willingness to receive a vaccination, increased spending intentions and comfort with resuming pre-pandemic behaviours like shopping, travel and family gatherings,” NRF Chief Economist Jack Kleinhenz said.
“This feel-better situation will likely translate into higher levels of household spending, especially around upcoming holidays like the Fourth of July and spending associated with back-to-work and back-to-school.”
You can learn more about current trends emerging in US retail here. Or if you’re restocking your store and looking to protect your merchandise against theft, see our range of security tags and security labels.
