Consumer Behavior

April retail sales increase as consumers take higher prices in stride

Photo by istock.com

May 18, 2022

The National Retail Federation has released data revealing consumers continued to spend in April, despite inflation, and retail sales overcame higher prices.

"April retail sales demonstrate consumer strength and willingness to spend despite persistent inflation, supply chain constraints, market volatility and global unrest," NRF President and CEO Matthew Shay said in a press release.

"While consumers are facing higher prices, they are preserving their budgets by shopping smart. Retail businesses are also facing increased costs like higher energy bills and rents as well as the cost for goods, transportation and wages. Despite already tight margins, retailers remain committed to their customers and are doing everything they can to absorb these costs to keep products affordable. With the Federal Reserve already raising interest rates, the Biden administration and Congress have an opportunity to provide targeted relief to American households by lifting the China tariffs, passing legislation to fix the supply chain and addressing immigration reform to ease the tight labor market."

U.S. Census data revealed overall retail sales in April were up 0.9%, seasonally adjusted from March, and up 8.2% year over year. That compares with increases of 1.4% month over month and 7.3% year over year in March.

Additional NRF data highlights include:

• Online and other non-store sales were up 2.1% month over month seasonally adjusted and up 11.3% unadjusted year over year.
• Clothing and clothing accessory stores were up 0.8% month over month seasonally adjusted and up 11.2% unadjusted year over year.
• General merchandise stores were up 0.2% month over month seasonally adjusted and up 3.7% unadjusted year over year.