US retail sales jumped to $649.8 billion, up by 3.8% from December to January according to the U.S. Census Bureau. The uptick in retail sales was encouraged by the threat of omicron receding and supply shortages easing.
Retail Sales Beat Expectations in January
January’s surge follows another growth in December with $611.42 billion in retail store sales, up by 2.5% from November. The positive growth indicates growing consumer confidence and boosts in retail total sales for November 2021 through January 2022 period. Sales were up 16.1% from the same period a year ago. The positive trajectory is being attributed to higher wages, increase in hirings, and improved savings leading to a boost in spending in retail stores. Though inflation had helped boost figures, most of January’s gain reflects more purchases rather than higher prices.
January’s Retail Trends
- Motor vehicle and spare parts dealerships saw $116,49 billion in sales up by 1.4%
- General store retailers saw sales reaching $13.93 billion in January up by 4.9%
- Retail sales at health and personal care stores saw a 3.6% rise, racking up $33.67 billion in sales
- While retailers in food services and drinking places saw a 3.7 % increase from the previous month with sales reaching $51.49 billion
- Sales at furniture and home furnishings stores also saw a rise of 7.2% with $12.12 billion in sales
Why you Should Keep on Innovating in Your Retail Business
Retail business is competitive with the market dynamic continuing to evolve. As such, you will need to resist the urge to stay the course and avoid taking chances. If you want to stay ahead of the game and create a resilient business you have to keep a close eye on your business, monitor trends, and expand your customer touchpoints.
Smart and agile small businesses retailers use technology to shorten the gap they have with their competition and grow their business.
Here you will need to look at technology to help you not only simplify and automate your operations but also reduce costs. Consider investing in a point-of-sale system that is easy to use and gives your customers options on how they can pay for the services.
You also need to increase your online presence by looking towards setting up your e-commerce store as well as engaging with clients and prospects through social media that will ultimately increase your client base.
Since this reporting relies on dollar values, I’m not sure it represents more purchasing but instead reflects the increased costs of purchasing the same things. Do they have a way to control for that?