US retailers are hit hard by the coronavirus pandemic, with some even filing for bankruptcy. FOX Business’ Kristina Partsinevelos with more.
US retail sales fell for the first time in seven months in November, suggesting consumers are holding back on spending amid a rising pandemic and waning federal aid.
The value of total sales fell 1.1% from the previous month, it showed Wednesday. It marked the first month-to-month decline since April, when the coronavirus pandemic forced businesses across the country to close and shoppers were urged to stay at home.
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The slowdown follows a spike in COVID-19 infections across the country, which has prompted some state and local governments to impose new restrictions on businesses.
The report found that the weakness spread across a number of industries, but the largest decline in sales was in department stores, at 7.7% last month. Turnover also fell at clothing and electronics stores.
Consumers, faced with the loss of key unemployment lifelines that had been enacted earlier this year with the introduction of the CARES law in March, cut spending despite the start of the holidays. Shoppers usually stayed at home on Black Friday, which is usually the busiest day of the Christmas shopping season.
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Consumers, who also faced the loss of key lifelines from unemployment, held back their spending despite the start of the holiday season.
The crowds in malls and stores were thin after health officials warned people not to shop in person. Retailers followed suit by posting their best deals online. According to data company Sensormatic Solutions, half fewer people shopped in stores this Black Friday than last year.
The Associated Press contributed to this report