Commerce reports U.S. retail sales are mixed in February

The United States Department of Commerce reported today that retail sales, for the month of February were mixed.

Total retail sales—at $528.1 billion—were down 0.5% compared to January's $530.9 billion, which was revised, and were up 4.3% compared to February 2019. Commerce said that total retail sales, from December 2019 through February 2020, rose 4.9% compared to the same period a year ago.

Looking at specific sectors, Commerce said February retail trade sales were up 0.5% over January and up 4.2% annually. Nonstore retailers, which include e-commerce, and food services and drinking places, were up 7.5% and 5.2%, respectively.

Given the ongoing coronavirus situation, which has seen myriad retail stores, brick and mortar big box stores, restaurants and drinking places have either reduced hours of operation or closed altogether, anecdotal comments are indicating retail sales will be low in March, with consumers purchasing essential items only.

Late last week, National Retail Federation (NRF) President and CEO Matthew Shay issued a statement in response to the Trump Administration declaring the COVID-19 pandemic a national emergency.

“It should come as a surprise to no one that the U.S. government has reached out to the retail industry for assistance in this time of crisis,” said Shay. “Our retail leaders stand at the ready to react and respond to help ensure the security and safety of employees and consumers alike in the communities they serve. We know the effects of this virus are impacting millions of people, directly and indirectly, in the U.S. and around the world. Retail brands are always on the frontline with citizens in communities large and small, and they are partnering with the health care industry and government officials to ensure COVID-19 is contained and mitigated as quickly as possible. Retailers are grateful for the opportunity to play such an important role and look forward to continued collaboration on the municipal, state and federal levels.”

Late last month, NRF issued its 2020 retail sales forecast, pegging annual gains between 3.5%-to-4.1% to more than $3.9 trillion, even with what it called uncertainty stemming from the trade war, coronavirus, and the November Presidential election.

And it added that 2020 retail sales should total between $3.93 trillion and $3.95 trillion. Online sales, which are included in the total, are expected to grow between 12 percent and 15 percent to between $870.6 billion and $893.9 billion.

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