April retail sales soar, some stores face labor crunch

Overall retail sales soared in April, according to the United States Census Bureau, while stores have begun to feel the labor crunch.

Signaling increasing consumer confidence, overall retail sales soared 51.2 percent in April, the U.S. Census Bureau said.

In addition, new data from the National Retail Federation (NRF) shows a 28.8 percent spike in overall retail sales compared to 2020. Grocery and beverage sales rose only slightly – up 0.3 percent from April 2020 and up 0.4 percent over March 2021, according to NRF.

“Year-over-year growth of 28.8 percent demonstrates that household finances remain strong, and the economic recovery will likely continue to gain steam as we head into the summer months,” NRF President and CEO Matthew Shay said in a press release.

The Center for Disease Control’s updated guidance for fully vaccinated individuals (they no longer need to wear masks and social distance) will help further open the economy and get more people back to work, according to Shay.

However, the year-over-year increases for both March and April were “unusually high” because most stores were ordered to close beginning in mid-March last year, NRF said in a press release.

As the COVID-19 pandemic begins to abate, grocery stores – much like restaurants – are facing difficulty attracting workers.

The National Grocers Assocation (NGA) said in a letter to President Joe Biden that the administration should step up efforts to push unemployed people to seek work due to the acute labor shortage, Grocery Dive reported.

Nearly all of the respondents to a recent NGA survey blame their difficulty in finding workers on the enhanced jobless benefits included in this year’s economic stimulus legislation.

Meanwhile, Amazon plans to hire 75,000 workers, and is offering USD 1,000 (EUR 823.73) signing bonuses at some locations, according to The Wall Street Journal. The new roles boast an average starting pay of USD 17.00 (EUR 14.00) per hour, versus the typical USD 15.00 (EUR 12.00) per hour starting wage.

Amazon-owned Whole Foods Market is also planning business changes. The Austin, Texas, U.S.-based grocery chain is merging its global and regional merchandising teams into a single team that will support purchasing across the entire company, it said in a press release.

“Dedicated operations teams in the regions will focus on merchandising execution and in-store operations, including e-commerce and store support,” Whole Foods said.

The company is also creating new leadership roles focused on local products and supplier relationships, which will help Whole Foods elevate its selection of local products, exclusive and emerging brands, and new innovations.

The changes will also allow regional operations to “focus exclusively on running our stores and delivering an exceptional team member and customer experience,” Whole Foods said.  

Photo courtesy of Sergey Ryzhov/Shutterstock

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