Though retail sales in the U.S. declined by 3 percent M-o-M basis in February, they increased by 2.2 percent on Y-o-Y basis as compared to February 2019. As per the U.S. Census Bureau retail report, apparel and accessories sales declined by 14.9 percent in the same year-over-year comparison. Sales at department stores also declined by 17.9 percent, says a Forbes report. Retailers now hope for Easter to boost pre-holiday sales in March.
 

Vaccine effectiveness and distribution directly impacts the economy Surge in vaccination rates and reopening of economy are expected to boost retail sales by around 8.2 percent to over USD 4.33 trillion in 2021, says a report by National Retail Federation. Increase in vaccination will encourage shoppers to shop in physical stores and dine out.

 

Consumers will also be driven to increase their apparel expenditures due to their travel plans. Almost 68 percent of millennials and 65 percent of Gen Z have planned a trip abroad as compared to 57 percent of Gen X and 42 percent of baby boomers.

 

The return of typical weather patterns is driving apparel sales in North America, says Richard. A Hayne, CEO, Urban Outfitters. However, despite unfavorable weather in the first three weeks of February 2021, overall comparable store sales trend in the country was better than the fourth quarter trend of Fiscal 2020, noted TJX Companies.

 

The survey included 61 percent respondents from the Gen Z and millennial generations and 39 percent from Gen X and Baby Boomers. The top categories surveyed included clothing, shoes, beauty and jewelry.

 

Apparel’s slow recovery going forward

 

Ethan Chernofsky, Vice President-Marketing, Sezzle, says, the apparel sector was trending closely with overall retail visits in early January before severe weather conditions throughout the country depressed visits significantly. February has been a difficult month as severe weather patterns negatively impacted the North American business. However, post February. Urban Outfitters is seeing signs of improvement, especially in stores located in warmer climates.

 

February starts the spring season for many retailers

 

Though there are many signs of a positive trend for apparel and accessories, the continuing unpredictable environment has halted expansion plans of many retailers. COVID related factors are also impacting their future prospects. Hence, most retailers are comparing their 2021 sales to those recorded in 2019 as they do not deem 2020 sales to be suitable for comparisons.

 

Source: fashionatingworld.com