In January 2025, U.S. retail sales in core segments—excluding food, auto, and fuel—rose by 3.9% year-over-year, reaching a total of $234.88 billion, as reported by the U.S. Department of Commerce. E-commerce sales experienced a similar growth of 3.8% during the same period. Despite typically being a sluggish time for retailers, the January figures were viewed as impressive, particularly given the challenging winter weather that encouraged consumers to buy outerwear and warm clothing. The National Retail Federation’s findings indicated an even stronger increase of 5.7% in retail sales (excluding restaurants, fuel, and autos) when compared year-over-year, although sales volumes increased by just 1.6% after adjusting for inflation.
Certain sectors demonstrated varied performance; while sporting goods saw a decline of 4.3%, home goods and general store sales both surged by 5.2%. Analysts noted that the uptick in home goods can be attributed to a renewed willingness for consumers to refresh their living spaces post-holidays. Additionally, the apparel sector experienced a 3.6% increase, aided by post-holiday promotions. While the retail industry celebrated a strong start to the year, experts caution that challenges such as persistent inflation, high debt levels, a sluggish housing market, and potential tariff impacts may lead to more subdued growth as the year progresses. Overall, analysts believe that retail will likely continue on a positive trajectory, although with potential hurdles ahead.
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About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
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