Despite dealing with mounting coronavirus cases, rising pricing, supply chain challenges, and workforce shortages, U.S. retailers announced record Christmas sales results on Friday, The Hill reported.
According to a National Retail Federation research, retail sales exceeded $887 billion in November and December, a new peak that marks a 14.1 percent gain over 2020 (NRF).
Consumers’ rising incomes and large personal savings, according to the NRF, are to blame for the robust sales. Clothing businesses experienced the biggest jump in holiday sales, up 33.1 percent, while sporting goods and general merchandise stores saw 20.9 percent and 15.2 percent increases, respectively.
Auto dealers, petrol stations, and restaurants were among the firms worst hurt by the omicron increase in December, according to the numbers, which are based on Census Bureau data.
While overall holiday sales surpassed estimates, the Commerce Department reported on Friday that retail sales dipped by 1.9 percent from November to December, against economists’ predictions of flat sales.
According to economists, the unusual spread of coronavirus last month, as well as consumers making Christmas shopping significantly earlier than usual to prevent supply chain disruptions, led to the drop in holiday sales. They also point to growing consumer costs, which are up 7% this year.