Key takeaways:
- April retail sales increased even as inflation and high gas prices persisted.
- Most retail categories experienced gains, demonstrating strong consumer resilience.
- Mark Mathews, NRF Chief Economist, said higher-income earners continue to drive spending.
Despite high gas prices and inflation, retail sales rose in April, increasing for the seventh consecutive month, according to data collected by the CNBC/NRF Retail Monitor.
Total sales increased 0.34% month-over-month and increased 5.73% year-over-year. In March, retail sales increased 0.4% month-over-month and 6.59% year-over-year.
“Retail sales continued to grow in April despite higher gas prices driven by the ongoing conflict in Iran, cautious consumer sentiment and the persistent concerns about sustained inflation,” NRF President and CEO Matthew Shay said in a statement. Spending on household priorities remains solid, supported by a steady labor market, wage growth and a significant influx of cash from tax refunds.
“While consumers are mindful on costs, retailers are working hard to keep everyday goods affordable for American families,” Shay said.
Total sales increased 6% year-over-year during the first four months of the year, and core sales were up 5.99%.
April Numbers Indicate ‘Real Resilience’
NRF Chief Economist and Executive Director of Research Mark Mathews said seven consecutive months of growth indicate consumers are resilient.
“This shows real resilience,” Mathews said. “There are no real signs of strain, but the future looks more challenging if inflation remains elevated now that tax refunds have mostly been delivered.”
Higher-income earners are driving spending as gas prices and inflation continue to put pressure on lower-income earners.
“[Higher income] have seen strong asset growth in the stock market and above-average income growth, putting them in a stronger position than lower-income households,” Mathews said.
Nearly All Categories Increase in April
All but one category — furniture and home furnishings — reported increased sales in April.
Clothing and accessories stores saw the most significant year-over-year gains, increasing 0.59% month-over-month, seasonally adjusted, and were up 9.75% year-over-year unadjusted.
“Clothing performed well because tax refunds continue to drive higher-than-normal discretionary spending,” Mathews said.
According to CNBC/NRF Retail Monitor:
- Sporting goods, hobby, music and book stores increased 0.12% month-over-month seasonally adjusted and up 8.55% year-over-year unadjusted;
- Health and personal care stores increased 0.45% month-over-month seasonally adjusted and up 8.42% year-over-year unadjusted;
- Digital products (such as electronic books and games) were up 1.11% month-over-month seasonally adjusted and up 8.09% year-over-year unadjusted;
- General merchandise stores were up 0.15% month-over-month seasonally adjusted and up 6.19% year-over-year unadjusted;
- Electronics and appliance stores were up 0.16% month-over-month seasonally adjusted and up 4.03% year-over-year unadjusted;
- Grocery and beverage stores were up 0.36% month-over-month seasonally adjusted and up 3.21% year-over-year unadjusted;
- Furniture and home furnishings stores declined 0.06% month-over-month seasonally adjusted but were up 2.58% year-over-year unadjusted; and
- Building and garden supply stores increased 0.09% month-over-month seasonally adjusted but were down 2.74% year-over-year unadjusted.
The Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.
