NEW YORK, Jan 14 (BUS) – Americans, grappling with product shortages, rising prices and the arrival of Omicron, cut their spending sharply in December after a flurry of early fall spending helped bolster the holiday season.
The US Commerce Department reported Friday that retail sales fell 1.9% seasonally adjusted in December from the previous month when sales increased 0.3%.
Sales in department stores are down 7%. Restaurant sales fell 0.8% and online sales fell 8.7%.
Omicron was recognized by the World Health Organization in late November, and the December report from the Commerce Department is the first to show some of its impact on consumer behavior.
The monthly retail report covers only about a third of total consumer spending and doesn’t include money spent on things like haircuts, hotel accommodations or plane tickets, all of which tend to see business wind down when anxiety about COVID-19 rises.
The National Retail Federation, the nation’s largest retail group, is analyzing last month’s sales figures and is expected to release actual holiday sales results later Friday. It expects record growth of anywhere from 8.5% and 10.5% compared to the same period last year despite challenges facing shoppers and stores.
The omicron variant has led to a widespread shortage of workers with people calling in sick, including in the retail sector, and shortages of supplies curtailing what they can sell. Shops and restaurants have reduced opening hours or remain closed on the days they were open before.
MI