, helped by an influx of cash
from government relief.
According to the National Retail Federation, US retail sales in November and December 2020 rose 8.3% from 2019, a much stronger performance than anticipated. Consumers made more purchases online, spending 10.2% more than a year ago. They also spent more on Christmas decorations, apparel, consumer electronics, and sporting goods. Holiday sales for online retailers skyrocketed 30.8%, significantly higher than the 19.6% growth expected.
The surge in spending was supported by the government’s financial assistance during the pandemic, including an extra $600 per week on unemployment benefits and stimulus checks. Increased savings from eating at home and reduced commuting expenses also freed up some money for holiday purchases.
In addition, retailers often offered discounts and promotions to offset the higher costs of goods, some of which were due to higher shipping rates and supply chain delays.
