U.S. to Experience Uneven Retail Recovery, Industry Group Says
U.S. to Experience Uneven Retail Recovery, Industry Group Says
(Bloomberg) -- America’s stores will face a bumpy road of “fits and starts” to recovery as the economy begins to reopen, according to the National Retail Federation.
Unpredictable virus outbreaks that vary by geography will create a gradual rebound from the economic lockdown that’s sought to halt the spread of Covid-19, said Jack Kleinhenz, chief economist for the industry group. Consumers are “likely to tiptoe back in rather than making an immediate return to the lives they experienced before,” he said in a statement.
Nonessential U.S. retailers like department stores and apparel chains have been slammed by the outbreak, with retail sales falling 8.7% from February to March -- the steepest drop on records dating back to 1992. Gross domestic product fell 4.8% in the first quarter, the biggest contraction since the recession in 2008.
Kleinhenz said the impact is likely to worsen, with first quarter data “likely just a murmur of how severely the pandemic has devastated many parts of the U.S. economy.”
Some states, such as Texas, Georgia and South Carolina are easing restrictions on commerce.
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