Consumer Behavior

January retail sales reflect strong start for 2021

Photo by istock.com

February 24, 2021

January was a busy month for consumers and retail sales illustrate a "very strong start" to the year, according to the National Retail Federation.

Overall retail sales were up 5.3% and 7.4% compared to a year ago, according to U.S. Census Bureau data. 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% seasonally adjusted from December and up 10.7% unadjusted year-over-year, according to a NRF press release.

The January sales bump was due to momentum from a record holiday season at the end of 2020 as well as the stimulus checks that came into play, according to NRF.

"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 in the release. "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."

Specifics from key retail sectors include:
• Online and other non-store sales were up 11% month-over-month seasonally adjusted and up 22.1% unadjusted year-over-year.
• Sporting goods stores were up 8% month-over-month seasonally adjusted and up 22% unadjusted year-over-year.
• Building materials and garden supply stores were up 4.6% month-over-month seasonally adjusted and up 13.7% unadjusted year-over-year.
• Grocery and beverage stores were up 2.4% month-over-month seasonally adjusted and up 11.6% unadjusted year-over-year.
• Furniture and home furnishings stores were up 12% month-over-month seasonally adjusted and up 9.3% unadjusted year-over-year.
• General merchandise stores were up 5.5% month-over-month seasonally adjusted and up 7.8% unadjusted year-over-year.
• Health and personal care stores were up 1.3% month-over-month seasonally adjusted and up 3.3% unadjusted year-over-year.
• Electronics and appliance stores were up 14.7% month-over-month seasonally adjusted but down 4.1% unadjusted year-over-year.
• Clothing and clothing accessory stores were up 5% month-over-month seasonally adjusted but down 11.3% unadjusted year-over-year.