US clothing and accessory store sales declined by 0.22 per cent in June, marking the first monthly decrease since February. While unadjusted sales in these categories grew by 2.71 per cent Y-o-Y, this was a slowdown from the 3.21 per cent increase observed in May 2025.
Matthew Shay, President and CEO, National Retail Federation (NRF), avers, spending declined across almost all sectors. Though economic fundamentals haven’t been disrupted yet and shoppers still have the ability to spend on priorities, the economy is gradually slowing and there has been an impact on the psyche of consumers. While recent legislation is supportive, unresolved and restrictive trade policies remain a significant headwind, Shay notes.
Powered by Affinity Solutions, the CNBC/NRF Retail Monitor further indicated, overall retail sales, excluding automobiles and gasoline, declined 0.33 per cent M-o-M seasonally adjusted in June. However, they rose 3.19 per cent unadjusted Y-o-Y. This contrasts with May's increases of 0.49 per cent M-o-M and 4.44 per cent Y-o-Y. Core retail sales also declined by 0.32 per cent M-o-M but increased 3.36 per cent Y-o-Y.
On an annual basis, June sales increased in seven out of nine categories, led by digital products, sporting goods, and health and personal care stores. However, monthly sales were down in all but one category. Jack Kleinhenz, Chief Economist, NRF, warned, US tariff disputes and policy changes are causing ‘anxiety and confusion,’ contributing to economic uncertainty.
Adding to these concerns, US President Donald Trump has threatened fresh tariffs of 30 per cent on imports from Mexico and the EU, slated to begin August 1, 2025. Trump justified these measures on social media, citing drug trafficking issues with Mexico and long-standing trade imbalances with the EU. This announcement follows earlier warnings from Trump to over 20 countries, including Japan, South Korea, and South Africa, regarding potential tariffs ranging from 25 per cent to 40 per cent unless new bilateral trade agreements are reached by August.
