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.
Editors' Picks
Sponsored by
More on Surveys
The Latest
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 YearsThe independent jeweler first opened its doors in 1888.
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in FloridaThe debut event will take place in Miami’s Coconut Grove neighborhood this fall.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor ShortageThe roundtable will take place May 17 ahead of the trade show’s welcome dinner.
Weekly QuizMar 27, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry CollectionThe “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
TrendsMar 31, 2025
Amanda’s Style File: Dripping in DiamondsDiamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With AcquisitionThe Utah-based company known for making wedding bands has acquired Doubloon Golf.
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH WatchesThe longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry StoreAuthorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.
SourcingMar 28, 2025
19th-Century Jade Book Now Available in EnglishLotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ RingThe ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand AmbassadorThe Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent JewelerThe family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco WatchesThe “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.
MajorsMar 26, 2025
QVC Group Appoints New PresidentAlex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat RubyThe ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft RecoveredThe two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More JewelryThe time to start experimenting with video content is now, writes columnist Emmanuel Raheb.
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic DesignFrom striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid TurnaroundThe jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair ServicesThe auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.
