Retail sales in January saw a seasonal slowdown compared to December, yet year-over-year growth remained strong, according to the CNBC/NRF Retail Monitor.
Total retail sales, excluding automobiles and gasoline, dropped 1.07% month-over-month (seasonally adjusted) but showed a 5.44% increase year-over-year (unadjusted). This follows a 1.74% monthly increase and a 7.24% yearly gain in December.
Home Furnishings Stores Face Decline
Sales at furniture and home furnishings stores declined 2.03% month-over-month and were down 0.27% year-over-year unadjusted, making it one of the lowest-performing sectors. Only building and garden supply stores performed worse in January.
The data in the Retail Monitor is sourced from Affinity Solutions, utilizing anonymized credit and debit card purchases.
Consumer Spending Trends
“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season,” said Matthew Shay, NRF President and CEO. “Despite the monthly decline, the year-over-year increase reflects a strong consumer base, with job growth and wage gains continuing to support spending.”
Retail Performance by Sector
The Retail Monitor’s core retail sales measure—excluding restaurants, automobile dealers, and gasoline stations—dropped 1.27% month-over-month but rose 5.72% year-over-year. In December, these figures had increased 2.19% month-over-month and 8.41% year-over-year.
While home furnishings and building supplies struggled, seven out of nine retail categories recorded yearly gains, led by:
- Online sales: +30.49% YOY
- Health & personal care stores: +10.39% YOY
- Clothing & accessories stores: +7.67% YOY
As retailers adjust to post-holiday shifts, consumer spending patterns will continue to shape the market in the coming months.
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