As might be expected, the store closures and stay-at-home orders necessitated by COVID-19 have hit retail hard, causing a 6.2% drop in non-food retail sales from February to March 2020. Sales for March 2020 dipped 3.8% compared to the same period in 2019, according to figures from the U.S. Department of Commerce released today.
Apparel retailers have absorbed the biggest shocks. Their year-over-year sales for March 2020 were down 50.7%, while food and beverage retailers actually increased sales by 28% compared to March 2019 as consumers stocked up on essential items.
The total monthly drop is even more dramatic when food services sales are factored in. The $483.1 billion sold in March 2020 represented an 8.7% decline from February and a 6.2% dip compared to March 2019. The 8.7% drop is the largest on record, according to the National Retail Federation (NRF), exceeding a 4.3% decline in November 2008 as the Great Recession was taking hold.
“COVID-19 has hit the retail industry unevenly,” said Jack Kleinhenz, Chief Economist at NRF in a statement. “This is a market of haves and have-nots. The haves are the stores that remain open with lines out the doors to buy daily necessities, while the have-nots are the stores that are closed and are taking the brunt of the impact of the pandemic.”
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Kleinhenz warned that the situation was likely to grow worse before things turned around, and that recovery would take some time even after stores begin to reopen. “March was a month that started out with many stores still open, but far more are closed now,” he said. “Don’t be surprised if the data going forward shows a worsening situation. Even if the economy begins to reopen in May, consumer behavior may take a long time to adjust. The road to recovery could be long and slow.”
