US Retail Industry

The U.S. Retail Industry has bounced back after the recession downturn. Purchasing patterns are changing in Americans due to rising inflation. As holiday seasons have already kickstarted from thanksgiving, many Americans are worried due to the continuous buzz about the thief (inflation) that can enter anytime and eat up the hard-earned money, the wind of recession, and supply chain crises.

The U.S. Retail Industry has leading retail companies including Walmart, Costco, and Amazon. Due to the presence of these companies in the U.S. Retail Sales growth from 2015 to 2023 Total Retail Sales.

Consumers cut their spending at stores, dealerships, and gas stations, hence a decline in retail sales. If we analyze the US Retail Sales and Food & Services (excluding motor vehicles, parts, and gasoline) U.S. consumers are only willing to purchase the essential items Consumers are saving money for the holiday season. Americans are spending less on automobile dealerships because of spiking interest rates.

Consumers are a powerhouse of the U.S. economy. They are a bit uncertain about the economy, but surprisingly consumers are going out and spending on Thanksgiving and Cyber Monday. The CEO of the National Retail Federation, Matthew Shay discussed a few things regarding consumer sentiments during holiday seasons on CNBC News. The purchase during the holiday is consistent with last year’s purchases. According to the National Retail Federation during Thanksgiving, the weekend shoppers grew 200.4 Mn which is a new record. The numbers are – 121.4 Mn visited physical retail stores, while 134.2 Mn shopped online during Thanksgiving weekend.

Among the Online Stores in the U.S., Amazon is a leading industry with a 37.5% market share. Walmart is a leading company in Retail Stores in the U.S. Retail Industry. It offers low prices and a wide selection of products. Falling retails picked up sharply in July. Americans spent rose on non-durable items than on durable items that can last at least three to five years, through this spending nature of spending among US citizens is that they are not willing to do unnecessary spending. They are cautious about the rising inflation and want to spend money on items which are essential for them.

 

Monthly Retail Sales Development in the U.S. in the year 2020

OL Stores – Online and Other Stores, G&B Stores – Grocery & Beverage Stores, GM Stores – General Merchandise Stores, H&P Stores – Health & Personal Care, F&H Stores – Furniture & Home Furnishing Stores, SG Stores – Sporting Goods Stores, BMG Stores – Building Materials & Garden Supply Stores, CA Stores – Clothing & Accessory Stores, and E&A Stores – Electronics & Appliances Stores

 

Online & Other Stores: There is a positive trend throughout the year, with the highest increase in March (12.10%) and June (30.20%). This suggests a strong preference for online shopping, possibly influenced by factors such as convenience, safety concerns, and the growing popularity of e-commerce platforms among US people.

Grocery & Beverage Stores: It shows consistent positive growth, indicating that consumers continue to prioritize spending on essential items. March saw a significant spike (25.70%), likely due to increased demand for groceries and essential supplies during the early stages of the COVID-19 pandemic.

General Merchandise Stores: This category experiences mixed trends, with negative growth in some months. Notably, April and May show significant declines, possibly reflecting reduced spending on non-essential items during the pandemic.

Health & Personal Care Stores: Positive growth is observed in most months, suggesting that consumers prioritize health and personal care products. April and May show negative growth, possibly due to disruptions in shopping patterns during lockdowns.

Furniture & Home Furnishing Stores: A consistent negative trend is observed throughout the year, with the most significant decline in April (-66.30%). This is attributed to economic uncertainties and reduced spending on non-essential items during the pandemic.

Sporting Goods Stores: The category shows mixed trends, with significant growth in June and July. Increased interest in outdoor activities during the warmer months contributed to the positive trends.

Building Materials and Garden Supply Stores: April shows a substantial decline (–48.70 %), which is due to the lifestyle of people, money was absolutely crucial and people were not ready to spend money on home improvement activities during the pandemic.

Clothing & Accessory Stores: The data reveals negative trends throughout the year, with the most significant decline in April (-89.30%). The spending reduced on clothing and accessories is influenced by economic uncertainties and changes in consumer behavior.

Electronics & Appliance Stores: The category shows mixed trends, with positive growth in some months. Consumers had increased spending on electronics and appliances for home entertainment and remote working.

The impact of the COVID-19 pandemic is evident in the data, with significant fluctuations in various categories in the U.S. Retail Industry. Essential categories like groceries and health products remained relatively stable, while non-essential categories, such as clothing and furniture, experienced more significant declines. Online shopping appears to be a consistent and growing trend, likely accelerated by the pandemic.

Monthly Retail Sales Development in the U.S. in the year 2021

Online & Other Stores: Consistent positive growth is observed throughout the year, indicating a continuous preference for online shopping. The highest growth is seen in March (30.70%) and February (23.50%), suggesting increased reliance on e-commerce.

Grocery & Beverage Stores: Generally positive trends with some fluctuations, showing that consumers continue to spend on essential items like groceries and beverages. April and May witnessed lower growth, possibly due to a stabilization in essential spending after initial pandemic-related stockpiling.

General Merchandise Stores: Positive growth is observed throughout the year, with the highest increase in November-December (15.20%). This suggests a steady demand for general merchandise items, potentially influenced by seasonal factors like holiday shopping.

Health & Personal Care Stores: Positive growth is consistent, indicating a sustained demand for health and personal care products. The highest growth is observed in November-December (9.60%), possibly driven by holiday-related health and beauty product purchases.

Furniture & Home Furnishing Stores: The category shows substantial growth throughout the year, with the most significant spikes in April (199.20%) and May (64.70%). Increased spending on furniture and home furnishings during the pandemic, possibly due to changes in work and living arrangements.

Sporting Goods Stores: Positive growth is observed, with substantial spikes in April (78.20%) and May (40.90%). This could be attributed to increased interest in outdoor and home-based fitness activities during lockdowns.

Building Materials and Garden Supply Stores: The category showed explosive growth in April (711.30%) and sustained positive growth throughout the year. Increased spending on home improvement and gardening, possibly influenced by more time spent at home during the pandemic.

Clothing & Accessory Stores: Positive growth is observed, with the highest increase in November-December (33.10%). This is due to holiday shopping and a gradual recovery in consumer confidence for non-essential items.

Electronics & Appliance Stores: Positive growth is consistent, with notable spikes in April (139.90%) and May (90.80%). Increased spending on electronics and appliances, possibly driven by the need for home entertainment and remote work setups during the pandemic.

The data shows a significant impact of the COVID-19 pandemic on consumer spending patterns, with increased focus on online shopping, home-related categories, and essential items. In the U.S. Retail Industry, categories like furniture, building materials, and electronics experienced substantial growth, reflecting changes in consumer behavior during lockdowns. The positive growth in general merchandise and clothing stores in the later months indicates a recovery in non-essential spending, possibly influenced by seasonal factors and improving economic conditions.

Monthly Retail Sales Development in the U.S. in the year 2022

OL stores consistently show strong positive growth throughout the year, with notable spikes in February and July. These trends indicate a continued preference for online shopping, potentially influenced by convenience and safety considerations.

G&B stores exhibit consistent growth, with February, July, and October showing particularly high positive percentages. Consumer demand for essential items and changing shopping habits may contribute to these trends.

GM stores experience robust growth in February and July, indicating strong consumer spending on a variety of products. The overall positive trend suggests a healthy performance for this store type in 2022.

H&P stores display positive growth in most months, with notable spikes in January and August. Consumer focus on health and personal well-being may contribute to these positive trends.

F&H stores show varying performance, with positive growth in some months and declines in others. The overall trend suggests fluctuations in consumer interest in furniture and home-related products throughout the year.

SG stores exhibit mixed results, with both positive and negative growth throughout the year. Seasonal factors and consumer preferences may influence the performance of sporting goods stores.

BMG stores experience mixed results, with positive growth in some months and negative growth in others. External factors such as weather conditions and construction activities may impact this store type.

CA stores show positive growth in February, July, and October but experience declines in other months. Seasonal fashion trends and economic factors may contribute to these fluctuations.

E&A stores face challenges, consistently displaying negative growth throughout the year. The decline in October and November-December suggests potential issues in this sector.

The U.S. Retail Industry in 2022 reflects a dynamic and diverse landscape, with different store types experiencing varying levels of growth. Online retail continues to dominate, emphasizing the importance of digital strategies for retailers. Consumer spending on essential items and general merchandise remains strong, while sectors like electronics face challenges. Retailers need to stay agile, adapting strategies based on changing consumer preferences and external factors.

 

Monthly Retail Sales Development in the U.S. in the year 2023 (Jan-Jun)

The performance of different store types varies across months, suggesting the retail landscape is dynamic. February sees a significant increase in most store types, with General Merchandise (GM) and Online (OL) stores experiencing notable growth. March shows a mixed performance, with some stores experiencing growth while others decline.

Online and Other Stores (OL): OL stores consistently show positive growth, indicating a continuing trend toward online shopping. January starts with a strong 5.7% growth, and February sees a remarkable 8.5% increase.

Grocery & Beverage Stores (G&B): G&B stores show a varying performance, with January and February seeing growth but March experiencing a decline. February sees a substantial 10.7% growth, possibly driven by increased consumer spending on essential items.

General Merchandise Stores (GM): GM stores exhibit strong growth in February, possibly due to increased consumer spending on a variety of products. March shows a decline, indicating potential challenges or changing consumer preferences.

Health & Personal Care Stores (H&P): H&P stores experience growth in February, suggesting a demand for health and personal care products during that period. However, the decline in March may indicate fluctuations in consumer priorities.

Furniture & Home Furnishing Stores (F&H): F&H stores show mixed results, with January and March experiencing declines, while February shows a modest increase. Consumer preferences for home-related goods may have influenced these trends.

Sporting Goods Stores (SG): SG stores exhibit varying performance, with June showing a positive growth of 1.8%. Overall, the data suggests potential challenges for sporting goods stores during the analyzed months.

Building Materials & Garden Supply Stores (BMG): BMG stores face challenges, consistently showing negative growth throughout the analyzed months. April sees a significant decline of -9.1%, indicating potential issues in this sector.

Clothing & Accessory Stores (CA): CA stores show mixed results, with February and June experiencing growth, while March and April show declines. Consumer spending on clothing is influence by seasonal trends and economic factors.

Electronics & Appliances Stores (E&A): E&A stores consistently face challenges, with negative growth in every analyzed month. The decline in January is particularly noteworthy at -6.5%, indicating potential issues in this sector.

Analysis – The retail industry is influence by various factors, including consumer preferences, economic conditions, and external events. Online retail continues to show strong growth, emphasizing the importance of e-commerce strategies for businesses. Different sectors within retail experience unique challenges and opportunities, requiring tailored strategies for sustained success. Monitoring and adapting to consumer behavior, economic indicators, and industry trends are crucial for retailers to navigate a dynamic market successfully.

The analyses of the US retail industry from 2020 to 2023 reveal the profound impact of the COVID-19 pandemic on consumer behavior and retail trends. In 2020, the pandemic triggered significant fluctuations, with essential categories maintaining stability while non-essential ones faced declines. The surge in online shopping became evident, accelerated by the need for contactless transactions during lockdowns. In 2021, the industry showed signs of recovery, marked by growth in general merchandise and clothing stores, indicating a shift towards non-essential spending as economic conditions improved.

The year 2023 highlighted a dynamic landscape, with online retail dominance and consistent growth in essential items, contrasting with challenges in sectors like electronics. The overarching theme underscores the importance of digital strategies for retailers, adaptability to changing consumer preferences, and the need for sector-specific approaches for sustained success in the ever-evolving retail market.