Overall retail sales slipped slightly in February, but core spending excluding automobile dealers, gas stations and restaurants rose, according to the National Retail Federation.
In its monthly retail report, the United States Census Bureau said overall February sales in the sector declined 0.4% from January but gained 5.4% year over year. January sales were up 3.2% month over month and 7.7% year over year.
In NRF’s calculation of core retail sales — not including auto dealers, gas stations and restaurants — February advanced 0.5% from January and 6.5% unadjusted year over year. In January, core retail sales increased 2% month over month and 6.9% year over year. As of February, NRF’s core retail sales numbers gained 6% unadjusted year over year on a three-month moving average.
Key channel results for February were:
- General Merchandise stores up 0.5% month over month seasonally adjusted and 10.7% unadjusted year over year.
- Furniture and Home Furnishings stores down 2.5% month over month seasonally adjusted but up 0.4% unadjusted year over year.
- Building Materials and Garden Supply stores down 0.1% month over month seasonally adjusted but up 0.7% unadjusted year over year.
- Health and Personal Care stores up 0.9% month over month seasonally adjusted and 8% unadjusted year over year.
- Grocery and Beverage stores up 0.5% month over month seasonally adjusted and 5.5% unadjusted year over year.
- Sporting Goods stores down 0.5% month over month seasonally adjusted but up 3.4% unadjusted year over year.
- Clothing and Clothing Accessory stores down 0.8% month over month seasonally adjusted but up 4.1% unadjusted year over year.
- Online and Other Non-store sales up 1.6% month over month seasonally adjusted and 8.5% unadjusted year over year.
- Electronics and appliance stores up 0.3% month over month seasonally adjusted but down 2.2% unadjusted year over year.
“February’s retail sales growth is not surprising given the strong growth we saw last month, continuing to reflect consumers’ ability and willingness to spend thoughtfully on household priorities,” NRF president and CEO Matthew Shay said. “While recent volatility in banking and financial markets is adding to economic uncertainty, the underlying fundamentals in the consumer economy remain on solid footing as jobs and wages are growing and inflation is trending down. Retailers continue to find innovative ways to meet consumers with the right products, offer the best prices to help families stretch their dollars, and deliver great experiences.”
NRF chief economist Jack Kleinhenz added, “Sales growth has slowed in recent months, but consumers’ economic health still looks good. February is typically the slowest month of the year, so monthly fluctuations are expected. Sales are higher than last year and that’s due in large part to the strong labor market, which means more income and spending. We are seeing a decent trend for retail sales growth built on the upward revisions to December and January sales. Nonetheless, seasonal adjustment factors the government is applying to the monthly data to account for irregular post-pandemic spending patterns make it difficult to accurately measure the strength of the consumer.”
