NRF: Retail sales fall in January, but show strong year-over-year gains
Consumers pulled back on spending in January after a stronger-than-expected holiday season.
Core retail sales — excluding restaurants, automobiles and gasoline — were down 1.27% month-over-month in January, but up 5.72% year-over-year, according to the CNBC/NRF Retail Monitor, released Monday by the National Retail Federation. That compared with increases of 2.19% month-over-month and 8.41% year-over-year in December.
Total retail sales — including restaurants but excluding automobiles and gasoline — were down 1.07% month-over-month but up 5.44% year-over-year in January. That compared with increases of 1.74% month-over-month and 7.24% year-over-year in December.
“Despite the monthly decline, the year-over-year increases reflect overall consumer strength as a strong job market and wage gains above the rate of inflation continue to support spending,” said NRF president and CEO Matthew Shay. “We’re seeing a ‘choiceful’ and value-conscious consumer who is rotating spending across goods and services and essentials and non-essentials, boosting some sectors while causing challenges in others.”
The results come after core retail sales grew 4% year-over-year during the 2024 holiday season and 3.6% for the full year.
Unlike survey-based numbers collected by the Census Bureau, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.
January sales were up in seven out of nine categories on a yearly basis, led by online sales, health and personal care stores, and clothing and accessories stores. Sales were up in three categories on a monthly basis.
Specifics from key sectors are below.
- Online and other non-store sales were up 0.44% month-over-month and up 30.49% year-over-year.
- Health and personal care stores were up 0.77% month-over-month and up 10.39% year-over-year.
- Clothing and accessories stores were down 2.96% month-over-month but up 7.67% year-over-year.
- General merchandise stores were down 2.43% month-over-month but up 7.53% year-over-year.
- Grocery and beverage stores were down 0.23% month-over-month but up 5.65% year-over-year.
- Sporting goods, hobby, music and book stores were down 1.89% month-over-month but up 2.82% year-over-year.
- Electronics and appliance stores were down 1.46% month-over-month but up 1.57% year-over-year.
- Furniture and home furnishings stores were down 2.03% month-over-month and down 0.27% year-over-year.
- Building and garden supply stores were up 0.27% month-over-month but down 0.99% year-over-year.
