U.S. retail sales declined by 8.7 percent in March, the largest on record, setting up consumer spending to be a major drag on GDP growth in the second quarter. The magnitude of the decline was even larger than expected, according to a report conducted by Wells Fargo Securities.
March also saw the worst monthly drop for auto dealers, furniture stores, clothing retailers, sporting goods stores and (not surprisingly) restaurants. Bars and restaurants typically make up 12 percent of retail sales, but by the second half of March, and certainly by April, these establishments will have been reduced largely to only take-out and delivery, suggesting steep declines in activity. The share of sales captured by bars and restaurants fell to only 10 percent in March.
March is usually the fifth slowest month of the year for grocery store sales. But, as Wells Fargo Securities notes, it is no shock that the best monthly gain on record was grocery stores and general merchandise stores (t
