FinancialsJan 28, 2022
LVMH’s 2021 Jewelry, Watch Sales DoubleSurveysFeb 17, 2022
January Retail Sales Rise Despite Inflation Woes
Following a December slip, monthly retail sales exceeded expectations in the face of inflation, the Omicron variant, and other challenges.
U.S. monthly retail sales in January were up 3.8 percent month-over-month, surpassing analyst expectations of a 2.1 percent increase.
New York—U.S. monthly retail sales in January surpassed analyst expectations, holding strong in the face of rising inflation, bad weather, the Omicron variant, and international tensions.
Sales were up 3.8 percent month-over-month in January to $649.8 billion, according to data from the U.S. Department of Commerce released Wednesday, while year-over-year sales were up 13 percent.
The results exceeded analyst expectations of a month-over-month increase of 2.1 percent.
December sales were weaker than previously thought, down 2.5 percent month-over-month rather than the previously reported 1.9 percent, as per the revised figures.
The numbers provided are not adjusted for inflation, but consumers have been battling rising prices.
The consumer price index, which measures the average change in prices over time consumers will pay for a basket of goods and services, rose 0.6 percent month-over-month in January and 7.5 percent year-over-year, the largest 12-month increase since February 1982.
“Consumers say they are worried about inflation, but they continue to spend,” wrote PNC Chief Economist Gus Faucher in an analyst note quoted by CNBC.
“Even taking into account the December decline, retail sales in recent months have been increasing much faster than prices, so households are purchasing larger volumes of goods and services, not just paying higher prices.”
The National Retail Federations calculation of retail sales—which excludes automobile dealers, gasoline stations and restaurants to focus on core retail—showed January was up 4.7 percent seasonally adjusted from December and up 8.5 percent unadjusted year-over-year.
“January’s numbers show that 2022 is starting very strong for consumers and retailers, especially on the heels of a record holiday season and record sales in 2021,” said NRF President and CEO Matthew Shay in a press release about the results.
The NRF’s holiday season runs from Nov.1 to Dec. 31, and sales for that period reached a record high. However, month-over-month sales in December were down, due in part to an early start to holiday shopping.
For the month of January, Shay noted retailers currently face many challenges including inflation, labor shortages, COVID-19, and uncertainty related to international tensions in Russia and China.
Related stories will be right here …
Sales were up 3.8 percent month-over-month in January to $649.8 billion, according to data from the U.S. Department of Commerce released Wednesday, while year-over-year sales were up 13 percent.
The results exceeded analyst expectations of a month-over-month increase of 2.1 percent.
December sales were weaker than previously thought, down 2.5 percent month-over-month rather than the previously reported 1.9 percent, as per the revised figures.
The numbers provided are not adjusted for inflation, but consumers have been battling rising prices.
The consumer price index, which measures the average change in prices over time consumers will pay for a basket of goods and services, rose 0.6 percent month-over-month in January and 7.5 percent year-over-year, the largest 12-month increase since February 1982.
“Consumers say they are worried about inflation, but they continue to spend,” wrote PNC Chief Economist Gus Faucher in an analyst note quoted by CNBC.
“Even taking into account the December decline, retail sales in recent months have been increasing much faster than prices, so households are purchasing larger volumes of goods and services, not just paying higher prices.”
The National Retail Federations calculation of retail sales—which excludes automobile dealers, gasoline stations and restaurants to focus on core retail—showed January was up 4.7 percent seasonally adjusted from December and up 8.5 percent unadjusted year-over-year.
“January’s numbers show that 2022 is starting very strong for consumers and retailers, especially on the heels of a record holiday season and record sales in 2021,” said NRF President and CEO Matthew Shay in a press release about the results.
The NRF’s holiday season runs from Nov.1 to Dec. 31, and sales for that period reached a record high. However, month-over-month sales in December were down, due in part to an early start to holiday shopping.
For the month of January, Shay noted retailers currently face many challenges including inflation, labor shortages, COVID-19, and uncertainty related to international tensions in Russia and China.
NRF Chief Economist Jack Kleinhenz also highlighted the myriad issues faced by retailers, making January’s sales “all the more impressive.”
“A triad of forces weighed on consumer behavior and spending as weather slammed a large portion of the United States, the omicron variant was relentless, and inflation was escalating. On top of that, the enhanced child care tax credit ceased at the end of 2021, impacting millions of families. Despite all that, consumers ramped up spending even after a record-breaking holiday season.”
The strong numbers in the face of these issues show that consumers are spending, said Shay, and that the economy is in “good shape,” making Shay hopeful yet cautious for the year ahead.
“We are confident that retail sales growth and overall consumer financial health can continue, and current pressures in the economy should be moderated if election-year political pressures don’t result in policy decisions that compound the challenges our economy is already facing.”
Breaking it down by category, January sales were up on a monthly and yearly basis in all but two sectors. Sporting goods stores and electronic and appliance stores both saw slight year-over-year declines.
Year-over-year gains were led by clothing stores, building materials stores and online sales.
More on Surveys
The Latest
SourcingDec 04, 2023
David Prager To Leave De Beers in 2024Ryan Perry, who has been with De Beers since 2002, also will be leaving the company next year.
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury WatchesThe watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJCThe industry veteran will step down from both roles in April 2024.
Brought to you by
The Most Important “C” in Diamonds: Confidence!Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.
TrendsDec 04, 2023
Amanda’s Style File: Decadent DecemberTanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.
Weekly QuizNov 30, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany ExecThe lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.
FinancialsDec 01, 2023
Movado Lowers Guidance Again After Q3 Sales DipThe company said it is facing a “challenging retail environment” but is prepared for the holiday season.
Brought to you by
If It’s Custom, Make It PlatinumWith holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond NecklaceIt’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong KongThe 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COOChris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow DiamondThe stone headlining the upcoming sale could fetch up to $5 million.
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ ProgramThe retail offering lets customers track their diamond’s journey.
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.
MajorsNov 29, 2023
Cast Debuts at Nordstrom, Closes on More VC FundingThe growing company also plans to open more of its own boutiques.
EditorsNov 29, 2023
Warren Buffett on Success, Mistakes and Betting on AmericaThe best quotes from the Oracle of Omaha and his right-hand man Charlie Munger from the 2018 Berkshire Hathaway shareholders meeting.
IndependentsNov 28, 2023
Maine Jeweler to Relocate After 76 YearsJ. Dostie Jewelers will move from Lewiston to Yarmouth this spring.
IndependentsNov 28, 2023
Fink’s Jewelers Opens 10th StoreIt’s the company’s second location in Tennessee.
AuctionsNov 28, 2023
Mary Tyler Moore’s Jewelry Is Up For Auction You can have this jewelry, why don’t you take it?
Events & AwardsNov 28, 2023
The Original Miami Beach Antique Show Is Celebrating 60 YearsNext year’s milestone show will be full of educational programming and collaborations.
EditorsNov 27, 2023
10 Tips for Selling Diamonds This Holiday SeasonSales experts and a diamantaire share their best advice on how to send customers home with diamond jewelry.
CollectionsNov 27, 2023
See the New ‘Platinum Born’ JewelryThe brand has released five new collections.
IndependentsNov 27, 2023
Frank Adams Jewelers Named ‘Family Business of the Year’The Albany Business Review recently honored the 100-year-old company.
GradingNov 27, 2023
Dr. John W. Valley Retires from GIA Board of GovernorsTo honor his legacy, GIA has set up a scholarship in his name.
CrimeNov 22, 2023
JSA Warns of Surge in Attacks on Jewelers on the RoadThere have been eight attacks in the last month, spanning from a jewelry store parking lot in Rhode Island to highways in California.
TrendsNov 22, 2023
Amanda’s Style File: November GlowThese 15 pieces of jewelry celebrate November babies and the hues of citrine and topaz that reflect the colors of the season.
SourcingNov 22, 2023
Columbia Gem House Raises $12K for WildlifeThe money will help a nonprofit rehabilitate sea turtles.
