“January’s retail sales numbers reflect a very strong start for consumers and retailers as we look ahead to a critical year curbing the global pandemic and strengthening our economic recovery,” NRF president and CEO Matthew Shay said. “Consumers and the economy as a whole remain in good shape despite unprecedented adversity over the past year, and congressional action has been a lifeline for households and businesses disproportionately impacted by the pandemic. We’ve convened retail leaders and communicated directly with the White House that it is critically important for the government to work with retailers to get the vaccine into communities and administered as quickly and as safely as possible.”

“We expected retail spending to ramp up in January thanks to the latest round of stimulus checks and better covid trends, and it clearly did,” NRF chief economist Jack Kleinhenz said. “There was none of the falloff in spending that we often find post-holiday and the increase was even better than expected. There is plenty of purchasing power available for most consumers, and the pickup in shopping has even been reflected in the number of hours worked by retail employees. Confidence is building thanks to the availability of COVID-19 vaccines and states and local governments are beginning to remove restrictions on economic activity. Going forward, I expect consumer spending to build on this momentum.”

The US Census Bureau said overall retail sales in January were up 5.3 per cent seasonally adjusted from December and up 7.4 per cent year-over-year. That compares with a monthly drop of 1 per cent but a yearly gain of 2.5 per cent in December. Despite month-over-month declines in the last quarter of 2020, sales have grown year-over-year every month since June, according to Census data.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed January was up 5.9 per cent seasonally adjusted from December and up 10.7 per cent unadjusted year-over-year. That compared with a decrease of 2.2 per cent month-over-month and an increase of 7.9 per cent year-over-year in December. NRF’s numbers were up 8.7 per cent unadjusted year-over-year on a three-month moving average.

January’s gains build on momentum seen during the November-December holiday season, when retail sales as calculated by NRF grew 8 per cent year-over-year to a record $787.1 billion even after being revised down from a preliminary estimate of $789.4 billion. For the full year, 2020 was up 6.7 per cent over 2019.

In January 2021, sales at clothing and clothing accessory stores were up 5 per cent month-over-month seasonally adjusted, but down 11.3 per cent unadjusted year-over-year.

Fibre2Fashion News Desk (RKS)