The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
U.S. retail sales stalled in April following a sharp advance in the prior month when pandemic-relief checks provided millions of Americans with increased spending power.
The value of overall retail purchases were essentially unchanged last month following an upwardly revised 10.7 percent gain in March that was the second-largest in records back to 1992, Commerce Department figures showed Friday. The median estimate in a Bloomberg survey of economists called for a 1 percent April gain.
The total value of retail sales was a record $619.9 billion in April, supporting economists’ forecasts for strong household spending for the remainder of the year.
While consumers may begin shift more of their spending money to services such as entertainment and travel as pandemic fears dissipate, elevated savings supported by fiscal stimulus should underpin retail demand.
ADVERTISEMENT
“American shoppers took a breather in April after splurging earlier this year after two rounds of big stimulus payments,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note. “But with more than half of the states now fully open for business and more quickly advancing their schedules, shoppers won’t be staying home for long.”
Eight of 13 retail categories registered declines in April sales, with the largest percentage decrease at clothing stores. Sales at apparel retailers dropped 5.1 percent after a 22.7 percent surge. General merchandise store sales fell 4.9 percent and the value of purchases at sporting goods outlets dropped 3.6 percent.
US stocks rose and Treasury yields declined in early trading Friday.
A separate report Friday showed that US manufacturing output rose in April by slightly more than expected, suggesting further improvement for factories that are otherwise buffeted by supply shortages and shipping challenges.
By Olivia Rockeman
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.