MNI DATA IMPACT: US Apr Retails -16.4%; Largest Drop On Record

--Retail Sales Ex. Motor Vehicle -17.2%; Ex. Mtr Veh and Gas -16.2%

By Brooke Migdon

     WASHINGTON (MNI) - The value of U.S. retail sales plummeted -16.4% in

April, nearly doubling March's record-setting -8.3% drop and representing the

first full month of coronavirus-related business closures, according to data

released Friday by the Commerce Department.

     Vehicle sales fell by a smaller-than-expected -12.4% in April following a

25.7% drop in March that was the largest monthly decline since 2009. Gas station

sales plummeted in April, falling by -28.8% and shattering records dating back

to 1992, according to the St. Louis Fed. Analysts interviewed by MNI said

vehicle and gas station sales likely bottomed out in April, and signs of a May

rebound appeared toward the end of the month. Sales excluding motor vehicles

fell -17.2% in April and sales excluding gas stations and motor vehicles were

down -16.2%.

     Clothing and clothing accessory store sales sank by an unprecedented

-78.8%, plunging past March's -49.4% drop that was the previous largest monthly

decline on record. Apparel retailers are not considered essential business under

most state guidelines, so clothing stores in nearly every state in April were

unable to sell to consumers.

     Other notable declines came from sales at electronics and appliance stores

(-60.6%), furniture and home furnishing stores (-58.7%), and food services and

drinking places (-29.5%). All three categories posted their largest monthly

decline in April.

     Grocery store sales dropped by -13.2% in April after a 28.6% gain in March.

Analysts interviewed by MNI said stockpiling in February and March likely slowed

in April as consumers adjusted to business shutdowns and anticipated state

reopenings in early and mid-May.

     Nonstore retailers, referring to digital stores and mail-order purchases,

posted the highest increase since January 2019, rising by 8.4% in April as many

consumers turned to online shopping following non-essential businesses closures.

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

[TOPICS: MAUDS$,M$U$$$,MT$$$$]