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Retail spending is in a free fall — nosediving a record 8.7 percent last month — as more companies continue to furlough workers as stores, malls and restaurants remain shuttered across the country during the coronavirus pandemic.

The March drop was the largest monthly fall since the Commerce Department began tracking retail sales three decades ago. The previous record was a 3.9 percent drop in November 2008, during the Great Recession.

Americans are still spending a fair amount on food and online deliveries, but not enough to offset the massive drops in shopping for clothes and accessories (down a stunning 50.5 percent) and furniture (down 26.8 percent). Spending on autos, parts and gasoline also plummeted.

Economists are warning that April might show an even bigger decline in retail spending as shutdowns continue — and in some areas didn't begin in earnest until late March. 

 that it's temporarily furloughing 51,000 workers, including almost all part-time store workers. It's retaining 82 percent of the chain's hourly full-time store workforce, but many other retailers have fared worse. Macy's and other department stores have temporarily closed and furloughed millions of workers. J.C. Penney is considering filing for bankruptcy, 

Consumer spending is by far the biggest driver of economic activity, which means all eyes will be on U.S. shoppers to see how quickly their spending may bounce back with potential pent-up demand — or what chains and businesses might not survive the pandemic. 

Business and Economic News

Alina Selyukh

Author

Americans are still spending a fair amount on food and online deliveries, but the shutdowns of stores, malls and restaurants led to a record 8.7 percent sales drop in March.

Retail spending just fell off a cliff

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