Please ensure Javascript is enabled for purposes of website accessibility

Fresno City Gets Extension in Herndon 4-Story Apartment Case

13 hours ago

With Major Heat Risk Forecast, This Is a Good Weekend to Stay Indoors in Fresno

16 hours ago

Trump Says Intel Has Agreed to Deal for US to Take 10% Equity Stake

16 hours ago

Epstein Associate Maxwell Says She Never Saw Trump Behave Inappropriately

16 hours ago

Pew: US Immigrant Population Declines for First Time in Nearly 60 Years

19 hours ago

Powell, Citing Jobs Risk, Opens Door to Cuts but Doesn’t Commit

21 hours ago

FBI Agents Search Ex-Trump Adviser Bolton’s Home, Source Says

21 hours ago

Gaza City Officially in Famine, With Hunger Spreading, Says Global Hunger Monitor

21 hours ago

Gavin Newsom’s Redistricting Plan Is on Its Way to Voters. What You Need to Know

2 days ago
US Retail Sales Plunged a Record 16% in April as Virus Hit
gvw_ap_news
By Associated Press
Published 5 years ago on
May 15, 2020

Share

BALTIMORE — U.S. retail sales tumbled by a record 16.4% from March to April as business shutdowns caused by the coronavirus kept shoppers away, threatened the viability of stores across the country and further weighed down a sinking economy.

The Commerce Department’s report Friday on retail purchases showed a sector that has collapsed so fast that sales over the past 12 months are down a crippling 21.6%. The severity of the decline is unrivaled for retail figures that date back to 1992. The monthly decline in April nearly doubled the previous record drop of 8.3% — set just one month earlier.

The Commerce Department’s report Friday on retail purchases showed a sector that has collapsed so fast that sales over the past 12 months are down a crippling 21.6%. The severity of the decline is unrivaled for retail figures that date back to 1992. The monthly decline in April nearly doubled the previous record drop of 8.3% — set just one month earlier.

“It’s like a hurricane came and leveled the entire economy, and now we’re trying to get it back up and running,” said Joshua Shapiro, chief U.S. economist for the consultancy Maria Fiorini Ramirez.

Shapiro said he thinks retail sales should rebound somewhat as states and localities reopen their economies. But he said overall sales would remain depressed “because there is going to be a big chunk of the lost jobs that don’t come back.”

The sharpest declines from March to April were at clothing, electronics and furniture stores. A long-standing migration of consumers toward online purchases is accelerating, with that segment posting a 8.4% monthly gain. Measured year over year, online sales surged 21.6%.

Other than online, not a single retail category was spared in April. Auto dealers suffered a monthly drop of 13%. Furniture stores absorbed a 59% plunge. Electronics and appliance stores were down over 60%. Retailers that sell building materials posted a drop of roughly 3%. After panic buying in March, grocery sales fell 13%.

Clothing-store sales tumbled 79%, department stores 29%. Restaurants, some of which are already starting to close permanently, endured a nearly 30% decline despite shifting aggressively to takeout and delivery orders.

For a retail sector that had already been reeling, a back-to-back free-fall in spending poses a grave risk. Department stores, restaurants and auto dealerships are in danger. Nearly $1 of every $5 spent at retailers last month went to non-store retailers, evidence that the pandemic has accelerated the shift toward online shopping.

In the past two weeks, J.Crew, Neiman Marcus and Stage Stores have filed for bankruptcy protection. J.C. Penney appears on the verge of following them. UBS estimates that roughly 100,000 stores could shutter over the next five years.

“The whole economic model is unraveling,” Neil Saunders, managing director of GlobalData Retail. “This is going to be very painful. For some, it’s going to be fatal.”

The Plunge in Retail Spending Is a Key Reason Why the U.S. Economy Is Contracting

Retailers are being imperiled not only by business shutdowns mandated by states and localities but also by a record loss of 36 million jobs over the past two months. The unemployed typically pull back sharply on retail purchases.

An April analysis by a group of academic economists found that a one-month closure could wipe out 31% of non-grocer retailers. A four-month closure could force 65% to close.

With few Americans shopping, traveling, eating out or otherwise spending normally, economists have estimated that the gross domestic product — the broadest gauge of economic activity — is shrinking in the April-June quarter at a roughly 40% annual rate. That would be the deepest quarterly drop on record.

The plunge in retail spending is a key reason why the U.S. economy is contracting. Retail sales account for roughly half of all consumer spending, which fuels about 70% of economic activity. The rest of consumer spending includes services like cellphone and internet contracts, gym memberships and child care, as well as home sales, which plunged in March.

With few Americans shopping, traveling, eating out or otherwise spending normally, economists have estimated that the gross domestic product — the broadest gauge of economic activity — is shrinking in the April-June quarter at a roughly 40% annual rate. That would be the deepest quarterly drop on record.

But the pressure being exerted on retail is being felt globally. Among the European countries that share the euro currency, retail sales fell a painful 11.2% from February to March.

The pandemic is not only depressing overall retail sales but also forcing shifts in what people do buy as they adjust to working at home. CSolutions, which monitors sales of packaged goods, has noted a shift to comfort and convenience. Sales of baking flour, tomato sauces, ice cream, premixed cocktails and breakfast sausages have surged from a year ago.

Pajama-buying rocketed 143% from March to April, according to Adobe Analytics, which monitors online retailers. By contrast, sales of pants, jackets and bras have declined.

Spending tracked by Opportunity Insights suggests that consumer spending might have bottomed out around mid-April before beginning to tick up slightly, at least in the clothing and general merchandise categories. But spending on transportation, restaurants, hotels and arts and entertainment remains severely depressed.

Credit card purchases tracked by JPMorgan Chase found that spending on such necessities as groceries, fuel, phone service and auto repair declined 20% on a year-over-year basis. By contrast, spending on “non-essentials,” such as meals out, airfare and personal services like salons or yoga classes, plummeted by a much worse 50%.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Crash Sends Car Into Building After Running Red Light

DON'T MISS

Fresno City Gets Extension in Herndon 4-Story Apartment Case

DON'T MISS

Atwater Prison Inmate Charged for Threatening to Kill Prosecutor’s Family

DON'T MISS

Multiple Passengers Are Killed After Bus Crashes in Western New York

DON'T MISS

Fresno Firefighters Contain Cambridge Avenue Blaze, No Injuries Reported

DON'T MISS

With Major Heat Risk Forecast, This Is a Good Weekend to Stay Indoors in Fresno

DON'T MISS

Trump Says Intel Has Agreed to Deal for US to Take 10% Equity Stake

DON'T MISS

Epstein Associate Maxwell Says She Never Saw Trump Behave Inappropriately

DON'T MISS

Wrongly Deported Migrant Abrego to Be Released Soon, Lawyer Says

DON'T MISS

Remembering Ron McCary, Who Did It All for KMJ

UP NEXT

Texas Senate Debates Redistricting Bill, Is Expected to Pass It Easily

UP NEXT

Trump: DC Mayor Bowser Must Get Act Together or Won’t Be Mayor Anymore

UP NEXT

Wall Street Soars as Powell Hints at Rate Cut in September

UP NEXT

Trump’s Tariffs Could Reduce US Deficit by $4 Trillion, CBO Estimates

UP NEXT

Pew: US Immigrant Population Declines for First Time in Nearly 60 Years

UP NEXT

Canada to Remove Many Retaliatory Tariffs on US Goods, Says Source

UP NEXT

After Joining TikTok, Trump Says He Could Extend Sale Deadline if Needed

UP NEXT

Powell, Citing Jobs Risk, Opens Door to Cuts but Doesn’t Commit

UP NEXT

FBI Agents Search Ex-Trump Adviser Bolton’s Home, Source Says

UP NEXT

More Americans Applying for Refugee Status in Canada, Data Shows

Multiple Passengers Are Killed After Bus Crashes in Western New York

15 hours ago

Fresno Firefighters Contain Cambridge Avenue Blaze, No Injuries Reported

15 hours ago

With Major Heat Risk Forecast, This Is a Good Weekend to Stay Indoors in Fresno

16 hours ago

Trump Says Intel Has Agreed to Deal for US to Take 10% Equity Stake

16 hours ago

Epstein Associate Maxwell Says She Never Saw Trump Behave Inappropriately

16 hours ago

Wrongly Deported Migrant Abrego to Be Released Soon, Lawyer Says

17 hours ago

Remembering Ron McCary, Who Did It All for KMJ

17 hours ago

I Was Preyed On for My VA Benefits. California Can Stop It

17 hours ago

Texas Senate Debates Redistricting Bill, Is Expected to Pass It Easily

17 hours ago

Trump: DC Mayor Bowser Must Get Act Together or Won’t Be Mayor Anymore

17 hours ago

Fresno Crash Sends Car Into Building After Running Red Light

A driver ran a red light Friday at the intersection of Herndon and West avenues, clipping another vehicle before crashing into a nearby buil...

13 hours ago

13 hours ago

Fresno Crash Sends Car Into Building After Running Red Light

13 hours ago

Fresno City Gets Extension in Herndon 4-Story Apartment Case

The crest of the United States Department of Justice (DOJ) is seen at their headquarters in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly/File photo
15 hours ago

Atwater Prison Inmate Charged for Threatening to Kill Prosecutor’s Family

First responders work at the scene of a bus crash on the New York State Thruway about 30 miles east of Buffalo, N.Y., on Friday afternoon, Aug. 22, 2025. The tour bus traveling from Niagara Falls to New York City crashed on a highway outside Buffalo on Friday, killing multiple passengers, including at least one child, and leaving some people trapped beneath the vehicle, officials said. (Lauren Petracca/The New York Times)
15 hours ago

Multiple Passengers Are Killed After Bus Crashes in Western New York

On Friday, August 22, 2025, Fresno firefighters contained a house fire on East Cambridge Avenue, preventing major damage and reporting no injuries. (Fresno Fire)
15 hours ago

Fresno Firefighters Contain Cambridge Avenue Blaze, No Injuries Reported

Fresno heat hot heatwave High Humidity
16 hours ago

With Major Heat Risk Forecast, This Is a Good Weekend to Stay Indoors in Fresno

A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters File)
16 hours ago

Trump Says Intel Has Agreed to Deal for US to Take 10% Equity Stake

Ghislaine Maxwell appears via video link during her arraignment hearing in Manhattan Federal Court, in the Manhattan borough of New York City, New York, U.S. July 14, 2020 in this courtroom sketch. (Reuters File)
16 hours ago

Epstein Associate Maxwell Says She Never Saw Trump Behave Inappropriately

Search

Help continue the work that gets you the news that matters most.

Send this to a friend