U.S. holiday sales of $887 billion exceeded expectations, but challenges remain

Despite a severe supply chain crisis and the impact of the COVID-19 pandemic and its variants, U.S. holiday sales in 2021 still showed impressive results, exceeding expectations of $886.7 billion, thanks to people's return to physical stores and strong growth in online sales.

Holiday sales, including e-commerce, grew 14.1% in November and December 2021 , according to the National Retail Federation (NRF), exceeding its latest forecast for 11.5% growth .

NRF CEO Matthew Shay said that despite supply chain and labor shortage issues, rising inflation and the impact of the Omicron variant , retailers delivered a positive holiday shopping experience to consumers and their families who were exhausted by the epidemic.

Due to the pandemic, the American people's spending on outdoor activities has decreased , wages have increased, and the government has issued cash checks to stimulate consumption , which has enabled most families to have a certain degree of surplus savings. This has prompted consumers to open their wallets to goods such as clothing , sporting goods , furniture and electronics during the holiday season .

According to NRF statistics , e-commerce and non- offline store sales grew 11.3% during the 2021 holiday season .

NRF said the success or failure of the 2021 shopping season was mainly related to shipping delays and product shortages caused by the epidemic . Retailers such as Walmart and Target chose to reroute goods to less congested ports or even rent ships to deliver goods themselves .

Mike Graziano, an analyst at RSM in the United States , also said that retailers' early stockpiling behavior boosted holiday sales in 2021. Although the Omicron variant affected consumer mobility in December, they started shopping long ago.

A year-end surge in Omicron variant- led coronavirus cases caused a 2.7% drop in U.S. retail sales in December , excluding auto dealerships, gas stations and restaurants , according to the NRF .

Apparel retailers including Abercrombie & Fitch and Lululemon Athletica reported dismal holiday sales due to staff shortages and falling store traffic caused by the Omicron variant .

In response, NRF stated that although inflation and the new crown epidemic did not suppress sales during the U.S. holiday season in 2021 , due to the uncertainty presented by the epidemic , retailers should prepare for possible challenges that may arise next .

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