June 21, 2023 — According to the National Retail Federation (NRF), retail sales increased in May despite continued economic challenges.
 
NRF president and CEO Matthew Shey once again attributed this increase in sales to gains in the job market and wages along with retailers offering competitive pricing, a wide product mix, and convenient shopping options to help stretch family budgets.


“This was a positive report with no sign of an abruptly slowing economy despite what has happened with inflation and interest rate pressures. Even though shoppers dialed back in some categories on a year-over-year basis, these numbers confirm that consumers still have the capacity to spend,” says NRF chief economist Jack Kleinhenz. “Job growth and wages are providing buoyancy, although inflation continues to take a bite out of consumer income. May is typically a strong month for retail as spring shopping hits its peak, but above-average temperatures and below-average precipitation no doubt played a favorable role.”
 
According to the U.S. Census Bureau, overall retail sales in May were up 0.3% from April and 1.6% compared to last year. April’s sales were up 0.4% compared to March and up 1.2% year over year.
 
NRF’s calculation of retail sales—which excludes auto dealers, gas stations, and restaurants—showed May up 0.4% from April and 4.4% unadjusted compared to last year. April’s sales were up 0.6% month over month and 1.4% year over year. On a three-month moving average as of May, NRF’s numbers were up 3% unadjusted year over year. For the first five months of the year, sales were up 4.2% compared to 2022.
 
May sales were up in six out of nine retail categories on a yearly basis. On a monthly basis, sales were up across the board. Here are some specifics from key sectors seasonally adjusted from last month and unadjusted from May 2022:
 

• Health and personal care stores were unchanged from April and up 9.7% compared to last year.
• Online and other non-store sales were up 0.3% from April and up 8.7% compared to last year.
• Sporting goods stores were up 0.3% from April and down 2.5% compared to last year.
• General merchandise stores were up 0.4% from April and up 1.7% compared to last year.
• Clothing and clothing accessory stores were unchanged from April and down 0.2% compared to last year.
• Electronics and appliance stores were up 0.2% from April and down 4.1% compared to last year.
• Furniture and home furnishings stores were up 0.4% from April and down 4.5% compared to last year.

 
For more information: nrf.com.