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Retail is open | Source: Pexels

Here we go again.

The rollercoaster numbers of 2020 continue with news that retail sales saw a record 17.7% increase according to the U.S. Census Bureau’s monthly retail survey. The caveat is that this follows record lows in April, which fell 14.7% according to the Census Bureau. Differences in tracking methodology from the National Retail Federation (NRF) and Dow Jones showed April declines of 16.4% and 12.3% respectively.

By the Census Bureau’s own account, retail sales in May are down 6.1% over the same period last year.

“The economy kicked off in May as retailers and other businesses reopened and both stimulus money and supplemental unemployment checks fueled spending driven by pent-up demand from two months of shutdowns,” says NRF Chief Economist Jack Kleinhenz. “But full recovery is still a long way off. Comparisons against April have to be taken in context because April was a full month when almost everything that wasn’t deemed ‘essential’ was shut down. Spending has improved considerably but it’s still far below where it was a year ago, and while the freefall in consumer confidence is over, unemployment remains high and confidence is still at recession levels.”

As with last month’s numbers, the NRF cautions the reliability of Census reporting as stores in many areas were closed and retailers may not have been in their offices to respond to the survey.

“Going forward, wallets are primed, increased foot traffic shows that consumers are returning to stores, and retailers are ready to meet their demand, but we are likely to remain on a roller coaster for a while,” Kleinhenz says. “What we need to look at is the trajectory of employment and the direction of the virus. There’s hope for a turnaround in the economy in the third quarter but if the virus has a reawakening, we’re going to see some serious situations for consumers.”

News of the May sales increases sent the markets on a surge today as investors rallied behind positive news while more than 20 million Americans remain unemployed.

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book and Co-President of The International Toy Magazines Association (ITMA). He is also a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC), New York Comic Con, Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.

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