Shoppers splurged in January as new stimulus checks arrived
As it turns out, January was for shopping.
Retail spending soared 5.3 percent last month compared to December, much more than anticipated, as U.S. families began receiving new federal coronavirus relief checks.
People bought more across the board last month, the Commerce Department reported Wednesday: furniture, electronics, clothes, sports equipment, restaurant food, groceries.
In a replay of early fall, hard-hit department stores saw the biggest gains. Spending there jumped 23.5 percent compared to December, still below what it was before the pandemic hit, but inching closer.
Overall, most retail categories have surged past and beyond their pre-pandemic levels. Only five remain down compared to January of last year: clothing stores (-11.1 percent), gas stations (-7.8 percent), electronics and appliance stores (-3.5 percent), department stores (-3 percent) and of course restaurants and bars (-16.6 percent).
Retail sales — which include spending on household goods and clothing, gasoline and cars, food and drink — are a key factor for U.S. economic health. In late 2020, this measure had declined for three months straight. Wednesday's report also revised December data to show a slightly deeper decline of 1 percent.
Here's where people were spending in January, compared to December, according to the Commerce Department data:
Department stores: +23.5 percent
Electronics and appliances stores: +14.7 percent
Furniture and home furnishings: +12 percent
Online retailers: +11 percent
Sports, music and other hobby stores: +8 percent
Restaurants and bars: +6.9 percent
Big-box stores: +5.5 percent
Clothing and accessories stores: +5 percent
Home improvement and gardening stores: +4.6 percent
Gas stations: +4 percent
Grocery stores: +2.5 percent
Pharmacies and other health/personal care stores: +1.3 percent
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