Buzz: At the start of 2024, the money registers of Californian retailers rang more often.
Source: My trust's table shows California retail sales minus online purchases, as measured by the Census Bureau.
Debate: In the six months to February, sales grew by a median of 1.4 percent. This is a reversal of the decline in purchases within the previous half 12 months of 0.5 percent on an annual basis.
Glass half full
So where were Californians actively shopping?
Some shopping hotspots remain popular even through the pandemic, with sales at health and private care stores up 6.7% year-on-year through February.
“Other” retail — including pet stores and thrift stores — saw a 5.9 percent increase. And general stores — from giant discounters to dollar stores — saw sales rise 4.3 percent as bargain hunting continued to be a passion.
Other retailers shrugged off the challenges posed by the coronavirus.
Electronics and appliance stores, which had been struggling since lockdowns ended, rebounded 4.6 percent year-on-year. Auto dealers, which finally had inventory to sell, saw sales rise 6.3 percent. And one other broad category – sports, hobbies, music and books – saw a tiny 0.8 percent gain.
Glass half empty
The slowdown of the DIY boom was accompanied by significant declines in sales.
Sellers of furniture and furnishings had to simply accept a drop in sales of 10.4 percent. Retailers who sold constructing and garden items recorded a decrease of 0.5 percent.
Clothing saw a 1.5% decline as people continued to wear casual clothes because of limited demand for office jobs.
And food and beverage stores lost 2.5% as consumers look elsewhere for grocery bargains.
Bottom line
The increase in consumption was supported by continued employment growth, easing inflation and increased bank card use.
In addition, lower expenses at gas stations because of falling pump prices (sales fell 9 percent annually) were welcome news for other shop owners.
image credit : www.mercurynews.com