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

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© Reuters. FILE PHOTO – Shoppers pass advertisements in a retail shop during Black Friday at Roosevelt Field, Garden City, New York. November 26, 2021. REUTERS/Shannon Stapleton

(Reuters) – The U.S. Holiday Sales reached a record $886.7 Billion in 2021. That’s according to data from a trade group. It was driven by people buying gifts online in the face of a rise in COVID-19 claims and supply chain concerns that could disrupt this crucial season.

National Retail Federation (NRF), which reported holiday sales included 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, stated that despite supply chain issues, rising inflation and labor shortages, retailers provided a pleasant holiday experience for pandemic-fatigued customers and their families.

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 (NYSE:) are working to make sure there is enough supply for the crucial season. Target (NYSE:) Re-routed goods to more congested ports, chartered vessels and helped holiday products reach their shelves in time.

Omicron’s coronavirus-related surge at the end the year added to the retailers’ woes. This limited staffing also reduced shop 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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