NRF: Retail sales rise 4.4% in May from year ago 

Retail sales tracked by Affinity Solutions for the National Retail Federation (NRF) Retail Monitor were up 0.49% in May compared with April, and were up 4.4% compared with May 2024. Year-over-year gains were 6.76% in April.

NRF said results are gleaned from credit and debit card purchase results, and do not require updating like survey-based numbers collected and reported by the U.S. Census Bureau.

“The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating,” NRF President and CEO Matthew Shay said. “While momentum remains, the nature of consumer spending is shifting as economic uncertainty increases. Consumer fundamentals haven’t been damaged yet, and a slowing-but-still-growing job market is supporting household priorities ahead of any meaningful price increases in the coming months.”

NRF Chief Economist Jack Kleinhenz said consumer momentum continues but the nature of consumer spending is shifting as uncertainty increases. Consumers are trading down rather than reducing spending in the face of higher retail prices, he said.

Retail sales were up 4.95% year over year for the first five months of 2025, but sales are not adjusted for inflation,. The U.S. Bureau of Labor Statistics reported that prices for all items rose 2.4% in May from the year-ago period. Core retail sales, which exclude restaurants, automobiles and gas stations, were up 0.23% in May from April, and up 4.2% from a year ago.

May sales were up in seven out of nine categories, led by digital products, sporting goods stores and general merchandise stores. Online sales rose 28.04% in May, compared with the year-ago period. Analysts have said consumers likely purchased ahead of the sweeping tariffs imposed by the Trump Administration, with the tariffs paused for a limited time.

Retailers have said lower fuel prices freed up some disposable income for families. Walmart has said consumers are cautious with discretionary spending, but continue to celebrate holidays and will likely spend on back-to-school needs.

NRF reports sporting goods, hobby, music and book store sales rose 8.21% in May. General merchandise sales were up 4.63% from the prior-year period. Grocery and beverage sales increased 4.53% year over year and health and personal care sales ticked 3.85% higher than a year ago.

Clothing and accessory categories are among those likely to be impacted by higher tariffs. That category saw sales gains in March and April, with the gains moderating to 3.21% in May. Electronics, another category highly imported from China, saw a spike in sales for April ahead of the tariff impact. Sales were down 1.98% from April but up 2.58% year over year.

Home furnishings are a discretionary category with tariff impacts likely. Home category sales were down 0.1% in May from a year ago. Dallas-based At Home filed for Chapter 11 bankruptcy on Monday, citing sluggish sales and consumer traffic in its warehouse-sized home furnishing stores. The chain will continue to operate and work to pay down a $2 billion debt load while it reorganizes.

Despite the spring gardening season, building and garden supply sales were down 7.31% year over year.