US retail sales have declined in January 2025 from holiday highs, yet year-over-year growth signals resilient consumer confidence, according to the latest data from the CNBC/NRF Retail Monitor.

Sales in clothing and accessories stores have declined 2.96% month over month on a seasonally adjusted basis in January. 

Despite the decline on monthly basis, sales in clothing and accessories stores saw a 7.67% increase year-over-year on an unadjusted basis. 

“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,” said Matthew Shay, NRF president and CEO. 

The US 2024 retail holiday season results topped expectations with core retail sales escalating to an unprecedented $994.1bn, according to data released by the US Census Bureau. 

Overall retail sales, excluding automobiles and gasoline, dipped by 1.07% month over month on a seasonally adjusted basis but rose by 5.44% on an unadjusted year-over-year basis in January, according to the Retail Monitor, powered by Affinity Solutions.  

These figures contrast with December’s more vigorous performance, which saw increases of 1.74% month over month and 7.24% year over year. 

Core retail sales, which exclude restaurants as well as automobile dealers and gasoline stations, followed a similar pattern—down 1.27% from the previous month but up 5.72% compared to the same period last year. 

January’s sales downturn was not confined to clothing and accessories; it extended across six categories on a monthly basis.  

Conversely, year-over-year data revealed gains in seven out of nine categories, with online sales, health and personal care stores, and clothing and accessories leading the way. 

During the holiday season from 1 November to 24 December 2024, the US clothing industry experienced a 3.6% increase in sales, as reported by Mastercard SpendingPulse. 

By Just Style