FRIDAY, March 29, 2024
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Retail sales plunged 16.4% in April as coronavirus pandemic drives record decline

Retail sales plunged 16.4% in April as coronavirus pandemic drives record decline

Retail sales plunged 16.4% in April, a record drop and another reflection of how severely the coronavirus pandemic continues to stifle the U.S. economy.

Data released Friday from the Census Bureau blew past analyst expectations, smashing March's revised decline of 8.3%. Shoppers may continue to hunt for cleaning supplies and other basic pantry items, but consumer spending, which typically drives 70% of the nation's economy, remains largely hollowed out.

The April figure reflects the weeks in which most states were still shut down. Last month, 20.5 million people abruptly lost their jobs and the national unemployment rate jumped to 14.7%, the highest level since the Great Depression.

A growing number of states contend that easing restrictions on malls, restaurants, salons and other businesses is essential to rebooting the economy, even as health officials warn about the deadly threat of moving too quickly.

But any form of "reopening" may not come soon enough for retailers that have already filed to bankruptcy. In recent weeks, J. Crew and Neiman Marcus filed for Chapter 11 protection. Stage Stores - which operates 738 stores in 42 states under Palais Royal, Gordmans and other nameplates - said it will liquidate hundreds of locations and search for a buyer.

Analysts said the list of retailers fighting for survival will only grow. Closures could have disproportionate effects on lower- and mid-tier shopping malls that faced uncertain futures even before the pandemic. For years, Americans shifted their shopping habits away from brick-and-mortar stores to embrace e-commerce offerings. Now, buying online if often the only - or safest - option.

 

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