News Update

Retail sales plunged 1.9% in December, e-commerce hardest hit

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Retail sales posted a shocking 1.9% decline in December 2021. Online stores took the biggest hit, with sales plunging 8.7% from the month before, the Commerce Department reported Friday. The advance monthly sales report to close out the year was considerably worse than the Dow Jones estimate for just a 0.1% drop.

Spending declines were spread across numerous sectors. Department store sales fell 7%, restaurant sales slipped 0.8% and online sales fell 8.7% compared with the previous month, according to the report.

Experts say multiple factors contributed to a slowdown in holiday shopping. The decline in retail sales happened at the same time Omicron cases of COVID-19 started to surge in the U.S. The last time there was a drop in retail sales was during the Delta surge.

Supply chain issues made life difficult for retailers and shoppers. For months, shoppers have been warned to get holiday shopping done early because of a lack of supply. All signs point to Americans taking that advice.

While December’s numbers were sluggish, 2021 retail sales rose 19.3% from 2020.

SINCE WHEN DOES DECEMBER MEAN A DROP IN HOLIDAY SHOPPING?

 

SHOCKINGLY, RETAIL SALES WERE DOWN 1.9% FOR THE MONTH, MUCH STEEPER THAN THE POINT-1% DROP ANALYSTS EXPECTED. 

 

THAT’S COMPARED TO SALES IN NOVEMBER. 

 

ONLINE STORES TOOK THE BIGGEST HIT IN DECEMBER – PLUNGING 8.7% FROM THE MONTH BEFORE.

 

NOW THERE’S A COUPLE OF THINGS AT PLAY HERE.

 

THE DROP IN SHOPPING HAPPENED THE SAME TIME OMICRON STARTED TO SURGE. THE LAST TIME THERE WAS A DROP IN RETAIL SALES BEFORE THIS – DELTA WAS COMING INTO PLAY. 

 

AND THE OTHER THING IS – WE’VE BEEN WARNING FOR MONTHS TO GET YOUR HOLIDAY SHOPPING DONE EARLY BECAUSE OF SUPPLY CHAIN ISSUES. 

 

ALL SIGNS POINT TO AMERICANS TAKING THAT ADVICE. 

 

DECEMBER MAY HAVE BEEN A SLOWER MONTH BUT RETAIL SALES ROCKED 2021 AS A WHOLE, UP 19.3 PERCENT FROM 2020.

 

I’M SDR FROM NY IT’S JB

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Retail sales posted a shocking 1.9% decline in December 2021. Online stores took the biggest hit, with sales plunging 8.7% from the month before, the Commerce Department reported Friday. The advance monthly sales report to close out the year was considerably worse than the Dow Jones estimate for just a 0.1% drop.

Spending declines were spread across numerous sectors. Department store sales fell 7%, restaurant sales slipped 0.8% and online sales fell 8.7% compared with the previous month, according to the report.

Experts say multiple factors contributed to a slowdown in holiday shopping. The decline in retail sales happened at the same time Omicron cases of COVID-19 started to surge in the U.S. The last time there was a drop in retail sales was during the Delta surge.

Supply chain issues made life difficult for retailers and shoppers. For months, shoppers have been warned to get holiday shopping done early because of a lack of supply. All signs point to Americans taking that advice.

While December’s numbers were sluggish, 2021 retail sales rose 19.3% from 2020.

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