Retail sales rose for the fourth consecutive month in November, according to new data from the U.S. Census Bureau released on Wednesday.
However, these numbers are considered underwhelming in light of October’s gains and the typical annual rise in sales for the month of November. November’s retail growth constituted a total of 0.3 percent, a fraction of October’s growth of 1.8 percent. This slackening of growth is attributable to a number of factors, namely the early onset of this year’s Christmas shopping season, rising costs of consumer goods, and persistent fears concerning the Omicron variant of the CCP (Chinese Communist Party) virus.
“Retail sales growth slowed considerably in November. I see this more as a sign that Americans started their holiday shopping early, as opposed to bad news for retailers,” said bankrate senior industry analyst Ted Rossman in an emailed statement to Pezou. “Even though November 2021 sales were only up 0.3 percent from October 2021, they were up 18.2 percent from November 2020. That year-over-year comparison is more significant, and it illustrates robust expansion.”
Indeed, retail has faced an uphill battle sustaining autumn’s early growth. On Friday, the U.S. Labor Department reported that consumer prices had risen by 6.8 percent in the twelve months ending in November—the highest increase for any twelve-month period since 1982. As inflation continues to exacerbate high consumer prices, the retail industry must fight against the current in order to maintain its high sales figures, as it has in the past several months.
Furthermore, the continued proliferation of the Omicron variant may have dissuaded shoppers from visiting brick and mortar stores, further contributing to the deceleration of sales. Omicron currently constitutes almost 3 percent of total CCP virus cases, according to the CDC, and fears of contagion may be responsible for keeping some customers home during the Christmas shopping season.
“Month-over-month growth was hard to come by in November—again, partly because the holiday shopping season got off to a roaring start in October, but also perhaps due to inflation concerns,” Rossman said. “[W]e are seeing some signs that inflation and supply chain woes may have held November sales back a bit, and those issues didn’t show up as much in October.”
Pezou : Retail Sales Rise Slightly in November