Author: Andrew Warth

WASHINGTON, March 16, 2021 – Retail sales gained considerable year-over-year traction in February – despite a monthly slowdown from unusually high numbers in January – as increased COVID-19 vaccination, government stimulus and reduced restrictions on businesses continued to impact the pace of spending, the National Retail Federation said today.

“February’s retail sales numbers are a minor speed bump on the road to post-pandemic recovery and are not a reflection of consumers’ willingness and ability to spend and drive the economy,” NRF President and CEO Matthew Shay said. “A number of factors contributed to these results, including major snowstorms in the northeast and unprecedented ice storms in the south, but they do not diminish the stimulus-related growth we saw in January or what we expect to see as additional stimulus relief hits consumer bank accounts in the weeks ahead. Looking forward to the spring and with consumer confidence at its highest level since last March, we remain optimistic that retail will help facilitate a surge in spending, job growth and capital investment in the second half of the year as more Americans are vaccinated and local economies reopen nationwide.” 

“After January’s strong showing, we expected some payback in the form of lower figures in February by comparison,” NRF Chief Economist Jack Kleinhenz said. “Despite that, it’s hard to see this as a setback when you consider how large the year-over-year gains are and that sales are well above pre-pandemic levels. February had winter storms that impacted consumers’ ability to get out and shop, and the IRS’ delay in when it started accepting tax returns pushed back the release of refunds. But increased vaccinations and reductions in restrictions allowed more people to venture out and government stimulus gave them more money to spend. Overall, February’s results confirm that consumers are willing to spend as the virus situation improves and continued government stimulus further strengthens the economic backdrop. With another round of stimulus checks being mailed right now, we expect another large boost in consumer spending over the next few months.”

The U.S. Census Bureau today said overall retail sales in February were down 3 percent seasonally adjusted from January but up 6.3 percent year-over-year. That compares with a monthly increase of 7.6 percent and a yearly gain of 9.5 percent in January. Despite occasional month-over-month declines, sales have grown year-over-year every month since June, according to Census data.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed February was down 3.4 percent seasonally adjusted from January but up 7.1 percent unadjusted year-over-year. That compared with an increase of 7.7 percent month-over-month and an increase of 12.7 percent year-over-year in January. NRF’s numbers were up 8.9 percent unadjusted year-over-year on a three-month moving average.

February’s gains come as NRF is forecasting that 2021 retail sales will increase between 6.5 percent and 8.2 percent over 2020, for a total between $4.33 trillion and $4.4 trillion. Retail sales during 2020 increased 6.6 percent despite the pandemic, beating the previous record growth rate of 6.3 percent in 2004.
 

February retail sales fell in every category except groceries, which were unchanged, on a month-over-month basis. But sales were up in two-thirds of categories on a year-over-year basis, which provides a better indicator of long-term trends and the state of the economy. Specifics from key retail sectors include:
 

• Online and other non-store sales were down 5.4 percent month-over-month seasonally adjusted but up 23.5 percent unadjusted year-over-year.
• Building materials and garden supply stores were down 3 percent month-over-month seasonally adjusted but up 11.4 percent unadjusted year-over-year.
• Sporting goods stores were down 7.5 percent month-over-month seasonally adjusted but up 11 percent unadjusted year-over-year.
• Grocery and beverage stores were unchanged month-over-month seasonally adjusted but up 7.2 percent unadjusted year-over-year.
• Furniture and home furnishings stores were down 3.8 percent month-over-month seasonally adjusted but up 5.1 percent unadjusted year-over-year.
• Health and personal care stores were down 1.3 percent month-over-month seasonally adjusted but up 2.4 percent unadjusted year-over-year. 
• General merchandise stores were down 5.4 percent month-over-month seasonally adjusted but unchanged unadjusted year-over-year.
• Electronics and appliance stores were down 1.9 percent month-over-month seasonally adjusted and down 6.7 percent unadjusted year-over-year. 
• Clothing and clothing accessory stores were down 2.8 percent month-over-month seasonally adjusted and down 14.9 percent unadjusted year-over-year. 
   

About NRF
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs – 52 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies.

This year, Watterson is celebrating its 20th year Anniversary. For 20 years, Schaumburg, Illinois, based Watterson has been “Doing Whatever It Takes” 24/7 in the emergency and disaster response, surplus property and facilities management, property redevelopment and environmental services industries.

Watterson was incorporated in 2001 with the goal of providing professional and consulting services to clients with environmental needs. Since that time, Watterson has grown into a trusted partner for their clients providing a whole suite of services across the United States and Canada that include emergency and disaster response, surplus property and facilities management, property redevelopment and environmental services. Steve Peldiak, President of Watterson stated, “Watterson’s goal is to stand shoulder to shoulder with our client partners and to adapt and grow with them and their needs. Watterson is proud of our strategic growth, nevertheless we have also kept our core client partners since our inception, highlighting our dedication to not be the biggest but to always be the best. We truly become an extension of our clients’ internal teams.”

Watterson is proud to be named one of Inc. 5000’s Fastest Growing Companies for seven years in a row. Watterson has also been the recipient of several Outstanding Service awards from its client partners.

“Watterson has grown dramatically during this time, by being dynamic, flexible and responsive and by always delivering our high sense of urgency. We look forward to growing our current client base and forging new partnerships with our Whatever It Takes determination”, Peldiak added.

About Watterson

Watterson is a 20-year nationwide provider with four integrated business units focused on: emergency and disaster response, surplus property and facilities management, property redevelopment, and environmental services. Watterson is 24/7/365 with 1600 plus vetted and insured service providers across the United States and Canada ready to do Whatever It Takes! We’re There. Anywhere. Anytime. 877-990-9336 To learn more about Watterson, please visit wattersonefm.com.

AQUALIS, a portfolio company of DFW Capital Partners and the leading national provider of comprehensive water resource management services, announced it has acquired the assets of Front Range Environmental, LLC. (Front Range; FRE), a post-construction stormwater management company headquartered in McHenry, Ill. This acquisition solidifies AQUALIS’ nationwide leadership position in stormwater management and accelerates our strategic initiative to provide comprehensive stormwater services with broad geographic coverage while creating entry to new geographies, including self-performance capabilities throughout California.

Since 2003, Front Range has remained focused on delivering the value, diligence and responsive service their customers expect in both public and private sectors. With a strong presence throughout the Midwest and Western portions of the United States, AQUALIS will now perform stormwater and lift station services in all 50 states and Puerto Rico.

Richard Matero, CEO of AQUALIS, said, “Front Range is well positioned in the Chicago market and throughout the Midwest and California. This acquisition is an excellent strategic fit for us as it further expands our service delivery footprint to support our existing and new clients for comprehensive stormwater management and compliance needs throughout the United States. Front Range’s employee expertise blends well with AQUALIS’, allowing the company to handle emergency, scheduled and reactive services, provide scheduled maintenance services, assist with local and state regulatory compliance as well as perform highly complex retrofit and rehabilitation projects.”

“This is an exciting acquisition for AQUALIS,” DeVer Warner of DFW Capital Partners stated. “Front Range Environmental’s focus on post-construction stormwater deepens our stormwater reach as we remain focused on broadening AQUALIS’ services in critical watershed areas throughout the U.S.”

About AQUALIS

AQUALIS is a leading nationwide provider of post-construction stormwater management and lift station services to the commercial, retail, industrial, institutional and municipal markets through consultation, monitoring, inspection, maintenance and repair. AQUALIS caters to national retailers, logistics providers, engineering firms, hospitals, institutional and industrial facilities, real estate management companies, distribution centers, national and multi-state organizations, individual and commercial property owners, airports and universities. For more information, visit www.aqualisco.com.

The National Retail Federation today issued its annual forecast, anticipating that retail sales will grow between 6.5 percent and 8.2 percent to more than $4.33 trillion in 2021 as more individuals get vaccinated and the economy reopens.

“Despite the continuing health and economic challenges COVID-19 presents, we are very optimistic that healthy consumer fundamentals, pent-up demand and widespread distribution of the vaccine will generate increased economic growth, retail sales and consumer spending,” NRF President and CEO Matthew Shay said. “From the outset of the pandemic, retailers have gone above and beyond even the most conservative safety guidelines to protect and serve their associates and consumers alike. Retailers are increasingly engaged in working with federal, state and local health officials to distribute and administer the vaccine. This partnership has been key to our economic health throughout the pandemic and will continue this year.” 

Early results show that retail sales in 2020 grew 6.7 percent over 2019 to $4.06 trillion, nearly doubling NRF’s forecast of at least 3.5 percent growth, which did not account for the impact of a global pandemic. This figure compares with 3.9 percent growth in 2019. Online and other non-store sales, which are included in the total figure, skyrocketed to 21.9 percent at $969.4 billion as consumers shifted to ecommerce. The numbers exclude automobile dealers, gasoline stations and restaurants.

The 2020 November-December holiday season accounted for nearly one-fifth (19.4 percent) of overall annual retail sales. Retail sales during this period grew an unexpectedly high 8 percent to $787.1 billion. Non-store and other online sales represented $206.9 billion of total holiday sales, up 22.6 percent over the year before.

NRF forecasts that 2021 retail sales are estimated to total between $4.33 trillion and $4.4 trillion. Online sales, which are included in the total, are expected to grow between 18 percent and 23 percent to between $1.14 trillion and $1.19 trillion.

NRF expects the overall economy to gain between 220,000 and 300,000 jobs per month in 2021, depending on the pace of the overall economy in the second and third quarters. Despite the economy’s stalled momentum at the end of last year, NRF forecasts real GDP growth between 4.5 percent and 5.0 percent.

“The trajectory of the economy is predicated on the effectiveness of the vaccine and its distribution,” NRF Chief Economist Jack Kleinhenz said. “Our principal assumption is that that the vaccination will be effective and permits accelerated growth during the mid-year. The economy is expected to see its fastest growth in over two decades.”
 
Kleinhenz noted that this year marks the second year of savings, record high stock valuations, increased home prices, enhanced government support and record low interest rates, which are all contributing factors towards the economy and consumer spending behavior. 

Additionally, Kleinhenz said households will still consume retail goods but will turn to services as they are able, which normally account for 70 percent of consumer spending. While the pandemic has precipitated broader adoption of multichannel services for the retail industry, households are becoming attached to the convenience and product selection of buying online.  

As the available data and factors surrounding the economy are subject to change due to several extenuating circumstances, NRF will update its estimates accordingly.

About NRF
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs — 52 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies.