Are consumers already becoming accustomed to inflation?
Despite some of the highest prices in decades, the overall take at the cash register still spiked in April, according to both the National Retail Federation (NRF) and the U.S. Census Bureau. While the two organizations use differing methodology in their calculations, both reported healthy year-over-year growth for April.
According to the NRF, sales spiked 6.4% over last year while the Census charted an 8.2% gain. Both organizations recorded a slight, 0.9% month-over-month gain from March.
“April retail sales demonstrate consumer strength and willingness to spend despite persistent inflation, supply chain constraints, market volatility, and global unrest,” says NRF President and CEO Matthew Shay. “While consumers are facing higher prices, they are preserving their budgets by shopping smart. Retail businesses are also facing increased costs like higher energy bills and rents as well as the cost of goods, transportation, and wages. Despite already tight margins, retailers remain committed to their customers and are doing everything they can to absorb these costs to keep products affordable. With the Federal Reserve already raising interest rates, the Biden administration and Congress have an opportunity to provide targeted relief to American households by lifting the China tariffs, passing legislation to fix the supply chain, and addressing immigration reform to ease the tight labor market.”
While U.S. toy industry numbers for the first four months of 2022 have yet to be reported, first quarter earnings season reflected healthy business as families continue to embrace the importance of play.
