Retail sales up 10.5% – Texas News Today
The National Retail Federation, one of the nation’s largest retail groups, boosted the outlook for the industry on Wednesday, saying it expects “the country’s fastest growth since 1984.”
NRF chief economist Jack Kleingents said retail sales increased between 10.5% and 13.5% as the economy recovered from the pandemic and customers wasted money , with an estimated total of $ 4 trillion in 2021. An event expected to grow from $ 440 billion to $ 4.56 trillion. This forecast includes in-store and online sales, but excludes car dealerships, gas stations and restaurants.
This equates to total retail sales of $ 4.2 trillion in 2020.
In February, industry groups predicted retail sales would drop from 6.5% to 8.2%, with annual sales exceeding $ 4.33 trillion.
The NRF also raised its GDP growth forecast for the full year to around 7%, from 4.4% and 5% forecast earlier this year. The company said it expects pre-pandemic production levels to return in the quarter.
Kleinhenz said the government’s stimulus measures have permeated the economy as a whole and are pouring into consumers’ wallets. He said this had boosted consumer confidence and led to a faster-than-expected recovery.
“There are clear signs that the economy is strong and resilient,” he said, adding that households are “ready to return to normal living, working and leisure conditions”.
Despite optimistic forecasts, the retail sector still faces challenges such as inflation, port congestion and labor shortages. According to the Commerce Department, retail sales in the United States rose 10.7% in March, then stagnated in April. Over-the-counter sales in May are uncertain.
It’s also unclear whether consumers’ wallets will shift to other priority spending, such as services, hotel stays, airline tickets and restaurant meals, rather than consumer goods.
Many retailers, including Wal-Mart, Levi’s and Macy’s, recently reported strong first-quarter quarters, upping their own forecasts for the year. Company executives said they saw consumers leaving their homes to schedule social gatherings and purchase new loungewear for jeans and dresses.
Macy’s CEO Jeff Jennet said in the May earnings announcement that the company expects “growing demand” to continue as shoppers shop for luggage, shoes, new clothing and clothing. cosmetics. Says that.
âWe don’t think of it as short-term pop,â he said.