June marked a solid month for retail sales growth, with total spending up 3.7 percent compared to last year, according to data released in mid-July. Even after accounting for inflation, core retail sales, which exclude gasoline, autos, and foodservice, grew by 0.9 percent in volume terms, underscoring continued consumer resilience.
While tariffs and economic uncertainty remain in the headlines, their full impact has yet to be felt at the cash register. Retailers benefited from delayed tariff deadlines and existing inventory that was not subject to new levies. Many sectors, including apparel and home furnishings, posted gains. Apparel sales rose 2.4 percent, supported by summer discounts and seasonal buying. The home sector also performed well, with furniture stores up 4.3 percent and a modest increase in home improvement sales.
However, department stores faced challenges, posting a 4.5 percent decline, largely due to store closures and evolving consumer preferences.
Looking ahead, economic pressures and looming tariffs could moderate growth in the second half of the year. Still, consumer spending sentiment remains steady, and interest rate changes may influence future performance. Retailers are closely monitoring margins and pricing strategies to maintain customer loyalty.
