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While retailers have seen businesses plummet, grocery stores and beverage depots have seen sales increase by more than 25 percent since the outbreak began in early March, according to a new report from the National Retail Federation.
According to the U.S. Census Bureau, the overall retail business was down 8.7 percent from February to March, and down 6.2 percent at the same point last year. The month-to-month drop was the largest ever recorded, topping a 4.3 percent decline in November 2008 when the country was in the midst of the Great Recession.
Retail trade sales — excluding gas station and automobile and auto parts sales — for March fell 6.2 percent from February and declined 3.8 percent from March 2019, the Census Bureau reported.
At the same time, grocery store sales for March jumped 26.9 percent from February and 29.3 percent from a year earlier, the Census Bureau reported. Those numbers were slightly higher than gains for the overall food and beverage stores category, which climbed 25.6 percent from February and 28 percent from a year ago.
“COVID-19 has hit the retail industry unevenly,” National Retail Federation Chief Economist Jack Kleinhenz said in a statement. “This is a market of haves and have-nots. The haves are the stores that remain open with lines out the doors to buy daily necessities, while the have-nots are the stores that have closed and are taking the brunt of the impact of the pandemic. These numbers should come as no surprise, given the mandated shutdown of our economy to slow the spread of the virus.”
National Retail Federation President and CEO Matthew Shay noted that “retailers - particularly grocery providers – are working with manufacturers, suppliers, and government agencies to make certain essential products and services remain readily available to customers. Retail supply chains remain strong and retail employees are working around the clock to meet consumer demand.”
Kleinhenz cautioned that even with the COVID-19 situation somewhat stabilizing, retailers may still feel the effects of the virus moving forward.
“Don’t be surprised if the data going forward shows a worsening situation,” he said. “Even if the economy begins to reopen in May, consumer behavior may take a long time to adjust. The road to recovery could be long and slow.”
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