MNI DATA IMPACT:US March Retail Sales -8.7% On Virus Shutdowns

Retail Sales Ex. Motor Vehicle -4.5%; Ex. Mtr Veh and Gas -3.1%

By Brooke Migdon

     WASHINGTON (MNI) - The value of U.S. retail sales plummeted -8.7% in March,

smashing records and plunging past market expectations for a record-setting

-8.0% decline, according to data released Friday by the Commerce Department.

     Vehicle sales dropped -25.6% in March after falling -0.5% in February, the

largest monthly decline since September 2009. Gas station sales similarly

nosedived, falling by -17.2% in the largest monthly fall since November 2008

according to the St. Louis Fed. Sales excluding motor vehicles declined -4.5% in

March and sales excluding gasoline and motor vehicles were down -3.1%.

     Food services & drinking places sales fell by -26.5% in March, the largest

m/m drop on record, reflecting nationwide restaurant shutdowns due to the

coronavirus. The National Restaurant Association told MNI this week that 3% of

restaurants closed their doors for good in March and the industry risks losing

USD225 billion in sales and 5-7 million jobs if shutdowns last through May.

     Other notable declines came from clothing and accessory store sales, which

fell by a record-setting -50.5% in March, furniture store sales (-26.8%), and

electronic and appliance store sales (-15.1%).

     Non-store retailers, referring to digital stores and mail-order purchases,

posted the highest increase on record, rising by 3.1% in March as consumers

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

     Grocery store sales also increased markedly, rising 26.9% as stockpiling

carried into March. Kroger, which owns more than 25 grocery store chains, said

the pandemic triggered a "significantly greater lift in sales across both

physical retail stores and digital channels" in March. Stockpiling began to

taper off during the second half of the month but was still higher than normal.

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

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