July 3, 2022

U.S. retail sales rose approximately in November

Retail sales rose moderately at the start of the holiday season, with consumers spending at a lower rate in November, facing the highest inflation in decades.

US retail stores, online retailers and restaurants Seasonal-adjusted 0.3% increase From the previous month in November, the Commerce Department said Wednesday. Sales rose 1.8% in October.

Consumer spending is the primary driver of strong economic growth this year. Retail sales rose 18.2% in November from a year earlier, with lower unemployment, rising wages and savings on incentives giving Americans the ability to spend more this year, even in the face of historically strong inflation.

Consumer prices rose 6.8% in November over the previous year, a 39 year high, According to the Department of Labor. Despite major disruptions in ports around the world, retail imports are expected to end the year with tremendous volume and rapid growth, according to the National Retail Federation.

“Clearly consumer demand is very strong and at least until now, we can tolerate some of the price moves we have seen,” said Alexander Lynn, an economist at Bank of America.

Warehouses in California’s domestic empire are an important step in the U.S. supply chain. The combination of low warehouse vacancy rates and port delays in the region create a perfect storm of challenges this holiday season. Photo: Sam Rosenthal

Since retail figures have not been adjusted for inflation, higher prices are contributing to some growth. But other factors, such as a steady increase in savings for many consumers from the worst of epidemics, are also driving growth. This will continue to contribute to rising prices Customers will be ready You have to pay them.

“We do not see that opposition,” said Big Lots Inc., a discounted retailer. Bruce Thorne, CEO of, said in a revenue call earlier this month. “We expect these price hikes to continue to pass.”

Daniel David, in his inventory boutique in Minnesota, said 2021 would be the best year in just 14 years in business.


Photo:

Daniel David

Daniel David, owner of Daniel’s Consignment Boutique in Rochester, Minnie, says 2021 will be the best year in his 14 years in the business. After recording about $ 240,000 in annual revenue in 2019 and 2020, it has already surpassed $ 350,000 in sales this year.

Lululemon,

Michael Kors and Gucci.

“People want to save money, but they still want to shop a lot, so here they can get a $ 50- $ 100 shirt for $ 12,” he said. This helped many to organize their spare time during epidemic strikes to tidy up their homes and wage war on disorder.

Mrs. David already sees opportunities coming: he has stockpiled more vintage offers to get ready as there is a shortage of prom dresses for next spring. “I’m telling people to come down and get them when I have them,” he said.

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Retailers in the industry expect 2020 to end the year strong and record significant improvements compared to sales figures. But the winds are continuing: inflation, continuing supply chain problems, labor shortages and unknown future impacts Omigron variant.

The setbacks that keep seafaring anchored at sea for weeks due to epidemic disasters, despite being on a boat, do not subside quickly. New federal policies And changes in practices in major ports. Major retailers though

Walmart Inc.

And

Amazon.com Inc.,

Shelves can be stocked and supplies will flow, The shops are in danger If items arrive too late for holiday shopping, get stuck in excess or expired inventory.

Sung Won Son, an economist at Loyola Marymount University in Los Angeles, said, “The supply side can’t keep up with the growing demand.”

Businesses that are hit hard by inflation may find consumers reluctant to make some purchases due to rising prices.

Jill Krobowski Perks, co-owner of three Lockhart Smokehouse barbecue restaurants in the Dallas area, says prices have had to rise by 20% to 30% in recent months.


Photo:

Kathy Tron

Jill Krobowski Fergus, co-owner of three Lockhart Smokehouse barbecue restaurants in the Dallas area, said prices have risen by 20% to 30% in recent months and are reluctant to increase further because they fear customers will bleach.

“We talk to our meat supplier like day traders,” Ms. Krobowski Pergas said. Beef prices are up 21% from last year, while pork is up 17%, according to government data.

Shortages of materials and labor have also caused problems. Lockhart Smokehouse has raised wages to retain their employees and had to fight suppliers who did not have enough delivery drivers. Even 2-ounce plastic cups for barbecue sauce are in short supply.

However, sales were strong in November, and he said the delta has improved from a bad wave of variation this summer.

Write to Gabriel D. at [email protected] Rubin

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