Retail Sales Surge On Stimulus

Retail sales rose in January by 5.3 percent on the wings of long-delayed action on the part of Congress, which OK’d a $900 billion COVID-19 stimulus package. As part of that, COVID stimulus checks went out to millions of Americans.

The increase in retail sales from December followed three consecutive months of declining sales during the 2020 holiday shopping season. For example, December’s drop in sales of 0.7 percent had been affected by a dramatic spike of COVID cases as well as protracted stimulus negotiations.

Month over month figures showed spending up in every major category. The comparison to one year earlier was more mixed, however.

Sales in the furniture and home furnishings category rose 9.3 percent in January from a year ago, non-adjusted. Sales in the building materials and gardening equipment category rose 13.7 percent.

Sales in the sporting goods, hobby, musical instruments and bookstores category rose a whopping 22 percent. The increase came as shoppers went for what they were allowed to do — use their new gear and go outside.

In contrast, sales of clothing and clothing accessories sank 11.3 percent, non-adjusted. With millions working from home, the desire for new duds sank.

January’s 5.3 percent retail sales increase, from December, beat economists’ estimates, which forecast a 1 percent rebound. However, the retail sales scene has been unpredictable, given the importance of Congress passing legislation and unpredictable nature of the spread of the coronavirus.

Assuming Congress passes the $1.9 billion stimulus package proposed by President Biden, the economy could come roaring back.

One hundred years after the last global pandemic and subsequent market and economic rebound, L’Oréal’s CEO talked up the idea of a return to the Roaring ’20s.

“Let’s be positive again and optimistic. When the COVID [is] gone, people will be happy to go out again, to celebrate, to socialize and this will be like in the famous Roaring ’20s,” L’Oréal CEO and Chairman Jean-Paul Agon told analysts and investors. “This will be the fiesta of makeup and fragrances, by the way, so we are very, very positive.”