Retail Sales Grew Again in May
Retail sales rose for the eighth consecutive month in May despite high gas prices and ongoing inflation, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released today by the National Retail Federation. The Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions.
Total retail sales, excluding automobile dealers and gasoline stations, were up 0.42 percent seasonally adjusted month-over-month and up 7.19 percent unadjusted year-over-year in May, according to the Retail Monitor. That compared with increases of 0.34 percent month-over-month and 5.73 percent year-over-year in April. The Retail Monitor calculation of core retail sales (excluding restaurants in addition to auto dealers and gas stations) was up 0.39 percent month-over-month in May and was up 6.98 percent year-over-year. That compared with increases of 0.34 percent month-over-month and 5.53 percent year-over-year in April. Total sales were up 6.29 percent year-over-year during the first five months of the year, and core sales were up 6.19 percent.
Total Retail's Take: May’s Retail Monitor shows that demand is holding, but not evenly. Momentum was "driven by a resilient labor market and consumers’ continued willingness to spend on retail goods despite pressure from elevated gas prices, tariffs and the conflict in the Middle East,” NRF President and CEO Matthew Shay said. Electronics and appliance stores, clothing stores, and health and personal care stores topped the charts for category growth, pointing to consumers' continued willingness to invest in essentials, personal needs, and selective upgrades.
However, the momentum could be attributed to this year's large tax refunds and be short-lived. "Consumers are prioritizing essentials and finding creative ways to stretch their household budgets. To support them, retailers are actively engaging their supply chains and supplier networks to keep prices affordable," continued Shay. Resilience is real, but winning the back half of 2026 will require pricing precision and operational agility.
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Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
