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U.S. holiday sales endure supply chain, Omicron snags to hit $887 billion, NRF says

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Bags are carried by shoppers at the Westfield San Francisco Centre mall in San Francisco (California), U.S.A, Wednesday Dec. 22, 2021.

David Paul Morris | Bloomberg | Getty Images

According to data from an industry body, holiday sales in the United States reached a new record of $886.7 billion for 2021. This was despite a spike in Covid-19 cases, and problems in supply chains that could threaten to disrupt this crucial season.

National Retail Federation (NRF), which reported holiday sales including e-commerce increased 14.1% between November and December. It was the largest growth rate in more than two decades, exceeding its previous forecast for an increase of up to 11.5%.

Matthew Shay, chief executive officer of NRF said that, “Despite rising inflation, labor shortages, and supply chain problems,” retailers offered a holiday experience for pandemic fatigued consumers and their family members.

Shipping delays due to the pandemic, and the subsequent product shortages, marked the shopping season as the busiest period for retailers.

Some retailers like Walmart TargetTo get their holiday products to shelves in good time, they re-routed them to better ports or chartered their own ships.

Retailers also suffered from the Omicron-driven surge in coronavirus infections at the close of the year, which slowed staffing and reduced store traffic.

According to NRF data, December retail sales fell 2.7% from November. However, E-commerce sales and non-store sales rose 11.3% during the holiday season.

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