Retail data suggests a long road to recovery, despite surging optimism - Business Insider

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Hopes of a retail rebound are surging, but a closer look at sales data suggests a long road to recovery

Because of all these variables, it's hard to extrapolate signs of a robust, sustainable recovery by looking solely at month-over-month data.

"A full rebound is well into the future, as fears of new outbreaks remain high and social distancing measures will limit full opening of shops and restaurants," Dr. Kerstin Braun, president of Stenn Group, said in a research note. Looking instead at year-over-year data, May's sales figures are far less impressive — particularly for clothing, electronics, and department stores.

Total retail sales dropped 6.1% in May compared to the previous year. Sales dropped more than 63% for clothing and accessory stores, nearly 26% for department stores, and nearly 30% for electronics and appliance stores. Grocery stores, however, saw a 14.4% increase in spending, as many people spent a bigger share of their food budgets on groceries at the expense of restaurants. Sales at restaurants and bars fell 39.4%.

 

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People are reluctant to take the risk of going out. Shopping online is all the craze these days.

Definitely a long road to recovery indeed! Businesses, who want to survive, need to thing about the long-term sales and short-term value add to customers. In other words, solve a problem consumers are facing now. BusinessIntelligence

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