Business

Retail sales up 10.5%

Shoppers wearing protective masks at the Glendale Galleria Shopping Mall in Glendale, California, Thursday, May 6, 2021.

Bingan | Bloomberg | Getty Images

The National Retail Federation, one of the country’s largest retailer groups, boosted the industry’s outlook on Wednesday, saying it expects “the fastest growth in the country since 1984.”

NRF Chief Economist Jack Kleingents said retail sales grew between 10.5% and 13.5% as the economy recovered from the pandemic and customers wereted money, with an estimated total of 4 trillion in 2021. An event that is expected to grow from $ 440 billion to $ 4.56 trillion. This forecast includes store and online sales, but not car dealers, gas stations, and restaurants.

That’s equivalent to total retail sales of $ 4.2 trillion in 2020.

In February, industry groups forecast retail sales to increase from 6.5% to 8.2%, with annual sales of more than $ 4.33 trillion.

The NRF has also raised its full-year GDP growth forecast to about 7%, compared to the 4.4% and 5% forecast earlier this year. The company said it expects pre-pandemic levels of production to return in the quarter.

Kleinhenz said government stimulus has permeated the economy as a whole and is pouring into consumer wallets. He said it stimulated shoppers’ consumer confidence and led to a faster recovery than expected.

“There are clear signs that the economy is strong and resilient,” he said, adding that households are “ready to resume normal conditions of life, work and play.”

Despite the rosy forecasts, the retail industry still faces challenges such as inflation, port congestion and labor shortages. According to the Commerce Department, US retail sales rose 10.7% in March and then stagnated in April. Over-the-counter sales in May are undecided.

It’s also unclear whether consumer wallets will shift to other priority spending, such as services, hotel stays, plane tickets, and eating out, rather than consumer goods.

Many retailers, including Wal-Mart, Levi’s and Macy’s, recently reported strong Q1 quarters, raising their own forecasts for the year. Company leaders said they were looking at consumers leaving home to plan social gatherings and buying new loungewear for denim and dresses.

Macy’s CEO Jeff Jennet said in May’s earnings announcement that the company expects “increasing demand” to continue as shoppers buy luggage, shoes, new clothes and cosmetics. Said that.

“We don’t think of this as short-term pop,” he said.

Retail sales up 10.5%

Source link Retail sales up 10.5%

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