US retail sector starts 2024 on strong footing; clothing sales rise

The total retail sales, excluding automobiles and gasoline, experienced a slight decline of 0.16 per cent seasonally adjusted month over month, yet showed a promising increase of 2.34 per cent year over year in January. This performance closely mirrors the gains seen in December, when retail sales rose by 0.44 per cent month over month and 3.07 per cent year over year, the report said.

Core retail sales, which exclude restaurants as well as autos and gas, remained stable with a marginal decrease of 0.04 per cent month over month, but showed a healthy increase of 3.24 per cent year over year in January. December's figures for core retail sales saw a smaller increase of 0.19 per cent month over month and 2.4 per cent year over year.

Online and other non-store sales increased by 0.68 per cent month over month seasonally adjusted and an impressive 25.47 per cent year over year unadjusted. Additionally, furniture and home furnishings stores saw a modest decline of 0.97 per cent month over month seasonally adjusted and a larger decrease of 6.35 per cent year over year unadjusted.

Matthew Shay, president and CEO of the NRF, expressed satisfaction with the performance, stating, "January sales continued the strong performance of retail sales in December, which is impressive coming off a record holiday season. More importantly, year-over-year growth was solid, showing consumers are still optimistic and willing to act on the spending power brought by growing employment and wages. This is a great start to the new year."

The CNBC/NRF Retail Monitor, now in its fourth month of operation since its launch in November, distinguishes itself from survey-based data by utilising anonymized credit and debit card purchase data compiled by Affinity Solutions. This methodology provides a more accurate and timely representation of retail sales trends without the need for monthly or annual revisions.

Fibre2Fashion News Desk (KD)