Consumers spent 1.9% less at retail stores (including online and bars and restaurants) in December compared to November. Inflation was 0.5% in December, so sales declined even more, 2.4%, in real terms.

Go deeper: The 1.9% decrease in December is concerning, but not unexpected. Sales surged 1.8% in October as consumers moved their holiday shopping earlier in the year to get ahead of supply chain and shortage issues.

• Sales were down at all types of businesses except building material and garden supply stores (+0.9%), health and personal care stores (+0.5%), and miscellaneous stores (+1.8%).
• Sales declined for all other businesses: motor vehicles and parts dealers (-0.4%), furniture stores (-5.5%), electronics and appliance stores (-2.9%), food and beverage stores (-0.5%), gas stations (-0.7%), clothing and accessory stores (-3.7%), sporting goods and hobby stores (-4.3%), general merchandise stores (-1.5%), and food and drinking places (-0.8%).

Be smart: The biggest decline was the most interesting data point. Non-store retailers (mostly online sellers) saw sales drop 8.7%. The data for online sellers is volatile as consumers buy more online when COVID-19 virus levels rise. The sharp drop in December coincides with the rise of Omicron though. In the case of December, it’s likely a result of consumers doing their holiday shopping in earlier months.

—Curtis Dubay, Senior Economist, U.S. Chamber of Commerce