April 19, 2023 — According to the National Retail Federation (NRF), retail sales slowed in March after strong gains in January and February, but spending was still higher than March 2022.
 
NRF president and CEO Matthew Shay cited the overall strength of the job market and wages, along with continued easing of inflation, as factors that support consumers’ ability to spend on household priorities through 2023.
 
“March spending reversed the strong pace of core retail sales we saw earlier this year,” says NRF chief economist Jack Kleinhenz. “These results reflect both slower economic activity and lower prices because of easing inflation, which means fewer dollars spent even if consumers buy the same number of goods, but there is still a lot of spending in the economy. Keep in mind that households tend to shop less during the post-holiday season. In addition, tax refunds typically contribute to spending at this time of year but are smaller this year than last. Nonetheless, we are still looking at positive sales growth moving forward in 2023.”
 
Sales calculations according to the U.S. Census Bureau showed overall retail sales down 1% in March compared to February but up 2.9% compared to March 2022.
 
NRF’s calculation of retail sales—which excludes auto dealers, gas stations, and restaurants—showed March down 0.5% from February but up 4.6% unadjusted year over year. Sales in February were up 0.5% compared to January and up 6.7% compared to February 2022. On a three-month moving average as of March, NRF’s numbers were up 6% unadjusted compared to last year.
 
On a yearly basis, March sales were up in five out of nine retail categories—led by online sales, health and personal care stores, and grocery stores. On a monthly basis, however, sales fell in all but three categories.
 
The following are some specifics from key sectors, seasonally adjusted from February and unadjusted from March 2022:
 

• Online sales were up 1.9% from February and up 12.4% compared to last year.
• Health and personal care stores were up 0.3% from February and up 7.3% compared to last year.
• Sporting goods stores were up 0.2% from February and up 3.3$ compared to last year.
• General merchandise stores were down 3% from February but up 2.9% compared to last year.
• Clothing and accessory stores were down 1.7% from February and down 2.2% compared to last year.
• Electronics and appliance stores were down 2.1% from February and down 9.9% compared to last year.

 
For more information: nrf.com.