US clothing sales cool in February as tariff concerns grow among consumers
13-3-2025
US CLOTHING SALES COOL IN FEBRUARY AS TARIFF CONCERNS GROW AMONG CONSUMERS
US clothing retailers saw sales dip 0.78% month-on-month in February as consumer confidence weakens amid tariff concerns according to the latest data from the CNBC/NRF Retail Monitor. Though US clothing store sales were lower against January figures, there was a 3.75% uptick in year-over-year growth which reflected a robust economic backdrop.
Overall retail spending (excluding car
dealerships and gas stores) fell 0.22% in February month-over-month but saw a
3.38% rise on an unadjusted basis year-over-year.
This performance is slightly weaker compared to January’s figures, which showed a 1.07% month-over-month decrease and a robust 5.44% year-over-year growth.
This performance is slightly weaker compared to January’s figures, which showed a 1.07% month-over-month decrease and a robust 5.44% year-over-year growth.
NRF president and CEO Matthew Shay said: “Consumer spending dipped slightly again in February due to the combination of harsh winter weather and declining consumer confidence driven by tariffs, concerns about rising unemployment and policy uncertainty.
“Unease about the probability of inflation and paying higher prices for non-discretionary goods has the value-conscious consumer spending less and saving more. But for the moment, year-over-year gains reflect an economy with strong fundamentals.”
The retail sector’s recent downturn coincided with US President Donald Trump’s announcement of new tariffs at the start of February: a 10% tariff on Chinese goods and a 25% tariff on goods from Canada and Mexico.
While the implementation of tariffs on Canada-Mexico was postponed twice, ultimately extending to 2 April for most products, tariffs on Chinese imports were escalated to 20%.
Earlier in the month, stakeholders from the US fashion and retail sectors voiced their opposition to the tariffs, 25% on imports from Canada and Mexico and an additional 10% on Chinese goods, citing potential harm to American businesses and consumers within the fashion industry.
Last week, Washington clarified that goods compliant with the USMCA, including textiles and apparel, would be exempt from the newly imposed tariffs on Canadian and Mexican imports for at least one month.
US February retail sales overview
Core retail sales, which further exclude restaurants along with automobile dealerships and gasoline stations, mirrored this trend with a 0.22% monthly decrease in February but achieved a 4.11% annual increase, as per the Retail Monitor data.
This is in contrast to January’s more pronounced 1.27% monthly dip and higher 5.72% annual gain.
For the initial two months of the year, total sales increased by 4.41% over the previous year, while core sales rose by 4.91%, outpacing the full-year growth of 3.6% seen in 2024.
By Just Style
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