Surveys

January Retail Sales Rise Despite Inflation Woes

SurveysFeb 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.

January Retail Sales Rise Despite Inflation Woes
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 … 

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.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Watch: How Is the Industry Doing When It Comes to Diversity?
Recorded WebinarsMar 31, 2023
Watch: How Is the Industry Doing When It Comes to Diversity?

Annie Doresca and Michelle Graff welcome Reggie Johnson and Sheryl Jones for a frank conversation on the state of DEI in fine jewelry.

Macy’s Longtime CEO to Retire Next Year
MajorsMar 31, 2023
Macy’s Longtime CEO to Retire Next Year

Jeff Gennette will step down in February 2024, passing the torch to the CEO of another notable retailer.

Piece of the Week: The Extraterrestrial Lunar Necklace
AuctionsMar 31, 2023
Piece of the Week: The Extraterrestrial Lunar Necklace

Artisan Martin Roberts fashioned lunar meteorites into 48 beads to create this out-of-this-world necklace.

Full Disclosure at Your Fingertips
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

JBT Re-Elects Richard Katz as Board Chairman
MajorsMar 31, 2023
JBT Re-Elects Richard Katz as Board Chairman

As for new members, the organization welcomed Jewelers of America’s Annie Doresca and Parag Jain of Parag Diamonds.

Weekly QuizMar 31, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
At Watches & Wonders, a $20M Watch Makes Its Debut
WatchesMar 30, 2023
At Watches & Wonders, a $20M Watch Makes Its Debut

Jacob & Co.’s new “Billionaire” timepiece features more than 200 carats of yellow diamonds.

See the Jewelry Collection Expected to Top Elizabeth Taylor’s at Auction
AuctionsMar 30, 2023
See the Jewelry Collection Expected to Top Elizabeth Taylor’s at Auction

Heidi Horten, wife of department store magnate Helmut Horten, collected jewelry from Bulgari, Cartier, Harry Winston and Van Cleef & Arpels.

Bringing Over 130 Years of Diamond Expertise to Modern Grading
Brought to you by
Bringing Over 130 Years of Diamond Expertise to Modern Grading

De Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.

Jewelers Mutual Marks a Major Milestone
MajorsMar 30, 2023
Jewelers Mutual Marks a Major Milestone

The jewelry industry insurer and solutions provider is celebrating 110 years in business this month.

10.57-Carat Purplish Pink Diamond Expected to Sell for $35M+
AuctionsMar 29, 2023
10.57-Carat Purplish Pink Diamond Expected to Sell for $35M+

Sotheby’s will auction the diamond, which it says is “arguably the most significant pink diamond to ever appear at auction,” in June.

Blue Nile to Close Fulfillment Center, Lay Off Workers
MajorsMar 29, 2023
Blue Nile to Close Fulfillment Center, Lay Off Workers

The retailer, recently acquired by Signet Jewelers, will lay off 119 employees in July.

See All the New Patek Philippe Watches for 2023
WatchesMar 29, 2023
See All the New Patek Philippe Watches for 2023

The Swiss watchmaker introduced 17 new models at Watches & Wonders Geneva.

Mark Henry Jewelry Offering Complimentary ‘Masterclass’ on Sales from Peter Smith
MajorsMar 29, 2023
Mark Henry Jewelry Offering Complimentary ‘Masterclass’ on Sales from Peter Smith

As part of the promotion, Smith will share his sales expertise during a 90-minute training session.

I’m Enchanted With Parmigiani Fleurier’s Perfect Travel Watch
EditorsMar 28, 2023
I’m Enchanted With Parmigiani Fleurier’s Perfect Travel Watch

At Watches & Wonders, the Swiss brand unveiled a follow-up to last year’s Tonda PF GMT Rattrapante.

Helzberg’s New Lab-Grown Diamond Collection Earns SCS Certification
CollectionsMar 28, 2023
Helzberg’s New Lab-Grown Diamond Collection Earns SCS Certification

The “rêve” collection’s engagement rings and wedding bands are geared toward “sustainability minded customers.”

This New Rolex Day-Date Tells Time … and Affirmations
EditorsMar 28, 2023
This New Rolex Day-Date Tells Time … and Affirmations

A new word appears on the dial each day of the week.

D.C. Jeweler That Honored 50-Year-Old Gift Certificate Closes
IndependentsMar 28, 2023
D.C. Jeweler That Honored 50-Year-Old Gift Certificate Closes

Bensons Jewelers closed for good Feb. 24, impacted in part by the decline in foot traffic downtown since the onset of the pandemic.

Swarovski Names New GM of North America
MajorsMar 28, 2023
Swarovski Names New GM of North America

Kolja Kiofsky has been with the crystal and jewelry company since 2010.

Jewels to Shine in Upcoming ‘Golden Age’ of Hollywood Auction
AuctionsMar 27, 2023
Jewels to Shine in Upcoming ‘Golden Age’ of Hollywood Auction

The Kruse GWS Auctions sale will include the replica “Taj Mahal” necklace Elizabeth Taylor made with Avon as well as a costume piece Marilyn Monroe wore.

Pandora Promotes GM to Chief of Retail Operations
MajorsMar 27, 2023
Pandora Promotes GM to Chief of Retail Operations

Massimo Basei is moving up, while Chief Commercial Officer Martino Pessina is stepping down.

Registration Is Open for the HardRock Summit
Events & AwardsMar 27, 2023
Registration Is Open for the HardRock Summit

AGTA GemFair and the Denver Gem & Mineral Show also will have a presence on the show floor.

Piece of the Week: The $5.8M Patek Philippe ‘Sky Moon Tourbillon’
AuctionsMar 24, 2023
Piece of the Week: The $5.8M Patek Philippe ‘Sky Moon Tourbillon’

Sold by Christie’s Hong Kong, this masterwork of complications now holds the record for most expensive watch ever auctioned online.

Movado Predicts Declining Sales Amid ‘Volatile’ Retail Environment
FinancialsMar 24, 2023
Movado Predicts Declining Sales Amid ‘Volatile’ Retail Environment

The watch company expects first-quarter sales to fall as much as 15 percent due to inflation and tough comps.

Lightbox Promotes General Manager to COO
Lab-GrownMar 24, 2023
Lightbox Promotes General Manager to COO

Adam O’Grady, general manager of the Lightbox Lab, has taken on the new role and will report directly to Lightbox CEO Antoine Borde.

Which Brands Do Watch Enthusiasts Love Most? Chrono24 Takes a Look
WatchesMar 23, 2023
Which Brands Do Watch Enthusiasts Love Most? Chrono24 Takes a Look

The watch marketplace gathered data from 1.3 million collectors, highlighting the most popular timepieces and exploring value appreciation.

Burgundy Diamond Backing Out of Ellendale Mine Deal
SourcingMar 23, 2023
Burgundy Diamond Backing Out of Ellendale Mine Deal

Burgundy has opted not to exercise its option to buy the mining claims Gibb River Diamonds currently owns.

GCAL Introduces 8X Cut Grade for Proprietary Cuts
GradingMar 23, 2023
GCAL Introduces 8X Cut Grade for Proprietary Cuts

Patented and specialty cuts now can receive an 8X Proprietary Certificate, which can be customized to include a company’s brand and logo.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy