American retail inventories rose 17.3% between May 2021 and May 2022, the Census Bureau reported Tuesday (June 28).
The report shows inventories of $705.3 billion, a 0.8% increase between April and May. However, this most recent report marks a seven-month low for retail inventories, and this latest increase is small compared to the 3.9% jump recorded in March.
See also: Retail Inventories Swell as Shoppers Cut Back, Driving Discounts
As PYMNTS reported in May, American retailers have found themselves saddled with an inventory surplus after months of scrambling to stock shelves. This has led chains such as Walmart and other retailers to begin discounting their unsold goods and launch new promotions to rid themselves of excess merchandise.
For some retailers, inventories rose earlier this year by 10% more than sales in the first quarter, the largest gap between the two figures since the start of the pandemic.
It was the pandemic-inspired supply chain crisis that led retailers to embark on buying sprees, under the rationale that they’d have enough goods for consumers who had built up savings and stimulus funds.
But high inflation and the resulting rise in prices have poked a hole in that plan, with shoppers taking a step back from major spending.
Read more: Durable Goods Report Shows Consumer Spending Holding Up Under Strain
Earlier this week, the Census Bureau released its durable goods report, showing that new orders for capital goods rose 50 basis points last month, compared to the 30 basis points established in April.
As PYMNTS noted, these figures could indicate confidence about the ability of consumers to keep spending. Orders for manufactured durable goods jumped by 70 basis points to $267.2 billion; that metric has risen in 12 of the last 13 months.
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