Retail sales in the US fell 1.1% in November

U.S. consumers have slowed spending recently as the pandemic sparked new business restrictions.

Still, total retail spending was seasonally adjusted $ 546.5 billion in November, above the pre-pandemic February level of $ 527.3 billion. The retail sales report includes expenses at stores, car dealerships, restaurants and online.

Economists surveyed by the Wall Street Journal had forecast that retail sales fell 0.3% seasonally adjusted in November over the previous month.

The weakness covered several key categories, with vehicle sales falling 1.7% in the month, electronics sales 3.5% and clothing sales falling 6.8% from October . Restaurants and bars were hard hit, as many cities and states introduced new pandemic-related restrictions, and receipts fell 4% a month.

The US economy continues to recover, but at a slower pace. Recruitment growth slowed in November, while demands for unemployment benefits rose recently. Consumer overall spending, which includes retail and service consumption, has continued to rise, but more slowly than during the summer. Consumer confidence has been mixed, with a survey reflecting a brighter outlook on the economy beyond the pandemic.

U.S. shoppers spent less than last year on a five-day stretch, including Black Friday and Cyber ​​Monday, as the increase in online shopping was offset by the decline in people going visit physical stores during the pandemic. People spent an average of just under $ 312 on shopping related to the Thanksgiving holiday on Cyber ​​Monday, 14% less than in 2019, even though it’s the same as in 2018, according to a National Retail Federation survey and Prosper Insights & Analytics.

Retailers also pushed for an earlier start to the holiday season, both to limit congestion in stores and to ease pressure on supply chains by avoiding bottlenecks in holiday orders.

Other data shows that spending has continued to lag since the Thanksgiving holidays. JPMorgan Chase & Co.’s 30 million credit and debit card holder tracker recorded a 4.1% decline in spending a year earlier in the week through Dec. 11. Credit and debit card data collected by research firm Affinity Solutions and research group Opportunity Insights showed overall spending fell 11.6% in the week ended Nov. 29 compared to levels of gener.

Retailers with significant online sales, particularly those with consumer products that work from home, have performed better than companies that rely on in-person interaction.

Lululemon Athletica Inc.

last week saw a jump in sales and profits in the most recent quarter as pandemic-tired shoppers withdrew sportswear and other comfortable clothing, although they offer a less rosy outlook as it increased the Covid-19.

Carlo Castronovo, owner of Giusseppe’s Pizza & Italian Cuisine in Old Bridge, New Jersey, said the pandemic means “the business is smaller than it has ever been, but we keep afloat,” as the collection at the door and home delivery have been “a sure savior.”

“It’s hard, especially because everyone is nervous,” Castronovo said. Normally, at this time of year, the restaurant would prepare holiday parties, “five trays of that and six trays of that, it’s definitely over,” he said.

Essential companies have fared better. Costco wholesale Corp.

reported strong quarterly sales on Thursday as home consumers spent more on food, household items and fitness products during the pandemic.

More people having breakfast at home during the pandemic have helped generate orders for Hidden Springs Maple in Putney, Vt. The family-owned maple syrup processor has experienced a 34% increase in overall sales since March, with sales of its website 74% and Amazon.com Inc.

orders exceed 130%. It closed its retail store due to the pandemic and reused the space for shipping orders.

“It’s been a really crazy journey, who knows if it will continue next year, it depends on people’s resilience to shop online,” said their manager, Andrew Cooper-Ellis. This year, the company canceled its usual Black Friday promotional event just to try to keep up with demand, he said.

Write to Harriet Torry at [email protected]