Despite achieving solid growth in the first half of 2021, December was gloomy for the retail sector. With inflation surging to 40-year highs, and supply chain bottlenecks, retail sales decreased 1.9%, which was significantly worse than Dow Jones’ estimate of a 0.1% decline.
The retail industry’s dismal performance is predicted to linger for a while because the global logistical gridlock has yet to be meaningfully ameliorated. Moreover, with new covid cases up each day, consumer pessimism is apparent. According to the University of Michigan, consumer sentiment declined this month to 68.8—the second-lowest level in a decade.
