US retail sales decline in January but show strong YoY growth: NRF

Retail spending in the US saw a seasonal dip in January 2025 following the holiday shopping surge in December, yet year-over-year (YoY) growth remained strong, according to the latest CNBC/NRF Retail Monitor, powered by Affinity Solutions.

Total retail sales, excluding automobiles and gasoline, declined by 1.07 per cent on a seasonally adjusted month-over-month (MoM) basis. However, the sales surged by 5.44 per cent unadjusted YoY, indicating a solid retail performance compared to the same period in 2024. This follows December’s increase of 1.74 per cent MoM and 7.24 per cent YoY.

Core retail sales, which exclude automobiles, gasoline, and restaurants, also experienced a MoM drop of 1.27 per cent in January but demonstrated robust annual growth of 5.72 per cent. This comes after core sales rose by 2.19 per cent MoM and 8.41 per cent YoY in December.

Despite the overall monthly decline, online and non-store sales saw a seasonally adjusted increase of 0.44 per cent from December, with a staggering 30.49 per cent YoY jump. Clothing and accessories stores saw a 2.96 per cent decline MoM but gained 7.67 per cent compared to January 2024. General merchandise stores recorded a 2.43 per cent monthly drop but a 7.53 per cent rise YoY. Furniture and home furnishings stores fell by 2.03 per cent MoM and declined slightly by 0.27 per cent YoY.

The positive YoY trends come after retail sales saw a 4 per cent annual growth during the 2024 holiday season and a full-year increase of 3.6 per cent.

“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season. 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. 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,” NRF president and CEO Matthew Shay said in a press release.

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Fibre2Fashion News Desk (HU)