U.S. retail sales remained robust in April, despite 40-year-high inflation. Apparel and accessories specialty store sales increased 8% from the prior year, while department store sales rose 2.9% from a year ago. Furthermore, non-store retail sales, or e-commerce, grew 12.7% year-over-year and 2.1% from March. “Despite the surge in prices weighing on their purchasing power, the U.S. consumer now appears to be single-handedly keeping the global economy afloat,” said Paul Ashworth, chief U.S. economist at Capital Economics, a consulting firm.
Although a reduction in discretionary purchases seems inevitable amid the inflationary environment, this summer travel season should boost sales. In addition, the global retail market is expected to grow at a 10.1% CAGR from 2022 to 2026.
