ARLINGTON, Va.—Total retail sales declined for the third consecutive month in December, dropping 0.7% after a 1.4% decline in November 2020. Of note, the November number was revised down 0.3 percentage points.
Separately, NAFCU also announced it is cancelling its annual conference this year.
"Sales at restaurants and bars dropped by 4.5% as rising COVID cases and the accompanying social distancing mandates are taking their toll," highlighted NAFCU Chief Economist and Vice President of Research Curt Long. "Curiously, sales at non-store retailers – a category which includes online retailers like Amazon – dropped by 5.8%.
"Meanwhile, Bank of America is reporting large increases in debit card activity following the receipt of stimulus checks," added Long.
Year-over-year growth in retail sales was up 2.9% during the month, down from 3.7% in November. Control group sales were also up from a year ago, rising 1.3%.
Results among the major retail segments were mixed. Compared to the last month, gas station sales improved 6.6% due to rising prices. Clothing sales were up 2.4% and motor vehicle and parts also increased, up 1.9%. Declines were most severe among non-store retailers (-5.8%), electronics and appliance stores (-4.9%), and restaurants and bars (-4.5%).
"The fiscal spigot appears wide open, and sales should begin to improve in January," Long predicted.
Annual Conference Cancelled
Separately, NAFCU said it is cancelling its 54rth Annual Conference & Solutions Expo, which had been set for July 27-30 in Savannah, Ga., due to the coronavirus pandemic.
“Ensuring the health, safety, and well-being of our employees and attendees at our in-person events amid the ongoing coronavirus pandemic is a priority for NAFCU,” said NAFCU President and CEO Dan Berger. “This is not a decision we have made lightly, but one we believe is in the best interest of all those involved due to the conference’s expected large in-person attendance. NAFCU remains committed to providing our member credit unions with the same high-level quality educational services they have come to expect from us via other virtual channels.”
NAFCU said it is working to develop webinars and other digital educational opportunities on session topics to continue to provide top-notch educational offerings and training during the coronavirus pandemic (a list of NAFCU’s upcoming webinars can be found here). The association is also offering virtual and in-person options for several of its smaller-scale 2021 conferences.