Industry Update

Unsurprisingly, retail sales saw a sharp decline in 2020 as the pandemic shuttered stores and the economic impact of the virus hampered consumer spending activities. However, the most recent July 2021 retail sales results indicate that consumer spending trends are reverting back to pre-pandemic level, supported by vaccine rollouts and easing of social distancing restrictions across the country.

Three rounds of Economic Impact Payments (stimulus checks) sent to eligible individuals throughout 2020 and 2021, Child Tax Credits paid in 2021, and the extension of the federal eviction moratorium all bolstered consumer spending in the wake of COVID-19, supporting the retail industry through what was one of the worst years for the sector.

However, moving forward, as governmental support wanes, the rise of the Delta COVID-19 variant, and new CDC guidelines, the short-term future of the retail industry remains somewhat in flux as we may experience a reversal of the positive trends seen earlier in 2021.