As states and cities began to reopen, retail sales, which includes stores, restaurants, gas, cars, food, and online purchases, surged in May. (NPR).
The largest increases came in the categories of clothing and accessories, furniture, sports, music and hobbies.
Retail sales climbed 17.7% in May, which is still down 6.1% from May 2019.
Top rebounding spending categories were :
- Clothing and Accessories – 188%
- Furniture stores – 89.7%
- Sports, music, and hobby stores – 88.2%
- Electronics stores – 50.5%
The Impact on Partnerships:
The rise of retail spending also means a chance for nonprofits and corporations to resume point-of-sale donations at physical or online registers. However, with virus resurgence happening, unemployment still hanging on, and general economic uncertainty, it may be best to focus on those retail partners with inelastic demand – like grocery stores – or those who have perfected the online retail experience. It’s also a good idea to manage leadership expectations with minimized retail fundraising projections for 2020 and 2021.