Feb. 16, 2023 — According to the National Retail Federation (NRF), retail sales bounced back strongly in January as wage growth and easing inflation encouraged spending.
 
“Despite inflationary headwinds, January retail sales show the resiliency of consumers in how they manage their budgets and make decisions on how, when, and where to spend their hard-earned dollars,” says NRF president and CEO Matthew Shay. “Retailers understand the needs of consumers and have in place the people, processes, and technologies to meet consumers with the right inventory, competitive pricing, and great experiences however consumers choose to shop.”
 
NRF chief economist Jack Kleinhenz cites job and wage growth, slightly lower inflation, and unusually warm and dry weather for the uptick in consumer spending after the holidays. In addition, “a large cost-of-living adjustment gave Social Security beneficiaries more money to spend, and many consumers were still drawing on savings built up during the pandemic,” says Kleinhenz. “January made up for the softer pattern of spending in December that came after early shopping pulled holiday spending forward this past fall.”
 
The U.S. Census Bureau reported overall sales in January up by 3% compared to December and 6.4% compared to 2022. December’s sales were down 1.1% month over month but up 5.9% year over year.
 
NRF’s calculation of retail sales—which excludes auto dealers, gas stations, and restaurants—showed January up by 1.5% from December and 4.8% unadjusted compared to 2022. December’s sales were down 0.5% month over month but up 4.8% compared to 2022. On a three-month moving average as of January, NRF’s numbers were up 5% unadjusted year over year.
 
Led by sporting goods stores, clothing stores, and online sales, retail sales in January were up in all but one retail category on a yearly basis and increased across the board monthly.
 
The following are some specifics from key sectors, seasonally adjusted from last month and unadjusted year over year:
 

• Clothing and clothing accessory stores were up 2.5% from last month and up 6.6% compared to last year.
• Online sales were up 1.3% from last month and up 5.7% compared to last year.
• Health and personal care stores were up 1.9% from last month and up 4.9% compared to last year.
• General merchandise stores were up 3.2% from last month and up 3.4% compared to last year.
• Electronics and appliance stores were up 3.5% from last month but down 6.5% compared to last year.

 
For more information: nrf.com.