NRF report: U.S. retail sales rose 9.4% in June

Consumer spending in June sent retail sales up 9.4% in June, according to the National Retail Federation’s Retail Monitor. The year-over-year growth excluded automobile dealers and gasoline stations. June sales were more than the 7.19% gain in May, marking the ninth consecutive month of sales gains.

“The summer shopping season got off to a strong start in June,” said Matthew Shay, NRF president and CEO. “Consumers took advantage of summer sales events, and many got an early jump on back-to-school shopping. The willingness to spend on retail goods has been supported by the retail industry’s laser focus on affordability as well as a durable labor market. Year-over-year gains look particularly strong compared with a weak June 2025.”

Core retail sales, which also exclude restaurant receipts, increased 10.08% in June from a year ago. That compares to annual gains of 6.98% reported in May. Total sales rose 6.81% year over year for the first half of 2026. For the same period, core sales were up 6.84%.

Sales are not adjusted for inflation, and the trade group reported a weak comparison a year ago, which somewhat skewed the results. NRF estimates that when seasonally adjusted, June sales were up 4.26%, and core sales increased 4.23%.

A report from Placer.al found foot traffic in U.S. malls rose 5.7% at open-air shopping centers like Pinnacle Hills Promenade in Rogers, and traffic was up 1.9% at indoor malls like the Northwest Arkansas Mall in Fayetteville. A report by Cushman & Wakefield found that consumers are shifting to shorter, mission-driven visits under 30 minutes on average, as they focus on fewer stores per visit.

NRF reports sales online and in-store in June were up in each of the nine categories it tracks. Sporting goods, hobby, as well as music and book sales posted increases of 18.53%. Buoyed by Amazon Prime and similar events in June, electronics and appliance sales rose 14.16% from a year ago.

The trade group also reports that early back-to-school shopping lifted clothing and accessories sales 13.65% year over year. Electronics books and game sales increased 13.56% in June compared to the same period last year. Health and personal care sales grew 12.87% year over year. General merchandise sales rose 9.9% from a year ago.

Grocery and beverage sales increased 5.26% year over year. Numerator reported that grocery hit a four-year low during Amazon’s Prime Week and other retailer events, with only 16% of shoppers making grocery purchases, down 22% from last year.

Furniture and home furnishings sales were up 4.92% in June compared to a year ago, amid bigger promotions by Wayfair and Pottery Barn with discounts topping 70%.

Building and garden supply sales have been trailing other categories for much of this year, but they turned positive in June, with receipts rising 4% from a year ago. The Federal Reserve Bank of New York reported that the category sales raked in about $41 billion in June as homeowners tackled early-summer do-it-yourself projects and mid-season planting.

Despite the higher numbers, the drivers for consumer spending in mid-2026 are generally negative as inflation remains elevated and gasoline prices are higher than a year ago, according to PNC Chief Economist Gus Faucher. He said employment numbers remain resilient, but said consumers have been rapidly spending their tax refunds. PNC forecasts slower growth in consumer spending for the rest of the year and into 2027 as income growth weakens and inflation continues to erode purchasing power.