This comes as the administration of the COVID-19 vaccine kicks off
National Retail Federation anticipates the growth of retail sales in 2021. Source: shutterstock.com
According to NRF, retail sales are expected to have a growth rate of 6.5% and 8.2% to over $4.33 trillion during the year. The distribution of the vaccine is attributed to this prediction. Economic growth, consumer spending, and retail sales are likely to increase. Retailers are also collaborating with local, state, and federal authorities to administer the vaccine.
In 2020, retail sales increased by 6.7% to $4.06 trillion as compared to 2019 where a 3.9% growth was recorded. Online and non-store purchases increased to 21.9%. $969.4 billion was recorded with most consumers preferring eCommerce marketplaces. The numbers have not included restaurants, gasoline stations, and dealers.
The November-December holidays in 2020 accounted for 19.4% of the annual sales across the year, a figure that is almost 1/5. Retail sales recorded $787.1 billion. This is an 8% growth rate, though unexpected. Online sales recorded a total of $206.9 billion, a 22.6% growth compared to 2019.
Retail sales in 2021 are expected to range between $4.33 million and $4.4 trillion, including online sales. Online sales are likely to have an 18%- 23% increase rate. This is between $1.14 trillion and $1.19 trillion.
In 2021, 220,000-300,000 new jobs are expected to be created. This will however depend on the economy in the second and third quarters. The GDP is estimated to grow between 4.5% and 5.0% However, this will depend on the distribution of the vaccine and its effectiveness.
2021 is the second year to record increased home prices and savings, low-interest rates, high stock valuations, and government support. All these factors affect consumer spending habits hence economic growth.
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