Retail Wipeout: Sales Plunge A Record 16.4% In April

[Sergey Golubev]

Retail Wipeout: Sales Plunge A Record 16.4% In April

In a historic collapse, retail spending in the U.S. nosedived again last month, dropping a record 16.4% as people avoided restaurants, bars, stores and malls during the coronavirus pandemic.

Retail sales are a major part of the economy, which has been battered by tens of millions of layoffs, and April's plunge broke the record set just a month earlier. The Census Bureau has been tracking sales since 1992. The measure includes spending on gasoline, cars, food and drink.

Friday's data showed a growing division between online retailers and other types of companies that remained closed, fired or furloughed staff and lost sales. Even grocery stores declared "essential" — which have seen huge demand and even hiring sprees — showed a slowdown in spending.

Here's how spending drops affected different parts of retail in April:

• Online (nonstore) retailers: +8.4%
• Grocery stores: -13.2%
• Restaurants and bars: -29.5%
• Clothing and accessories stores: -78.8%

Economists have warned that many retail stores would not make it through the pandemic, especially smaller chains and companies that had weak financial footing before the health crisis. One recent survey found a quarter of clothing retailers wondering whether they'll make it till the holidays.

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