Overall U.S. retail and grocery sales fell slightly month-over-month in February as consumer concern about tariffs and food inflation tightened spending, but despite the drop sales still increased year-over-year, according to new data.
Sales at grocery and beverage stores fell 0.07 percent from January to February, but soared 4.08 percent year over year unadjusted, according to the National Retail Federation’s CNBC/NRF Retail Monitor. Total retail sales, excluding automobiles and gasoline, also declined 0.22 percent seasonally adjusted in February, but inclined 3.38 percent unadjusted year over year.
“Consumer spending dipped slightly again in February due to the combination of harsh winter weather and declining consumer confidence driven by tariffs, concerns about rising unemployment and policy uncertainty,” NRF President and CEO Matthew Shay said.
Unease about the probability of inflation and paying higher prices for non-discretionary goods has the value-conscious consumer spending less and saving more, he said.
However, year-over-year retail sales gains reflect an economy with strong fundamentals, Shay said.
The NRF said the February downturn came after President Donald Trump announced 10 percent tariffs on goods from China, and 25 percent tariffs on goods from Canada and Mexico in early February. The Canada-Mexico tariffs were immediately delayed by a month, then delayed again for most goods until 2 April last week. However, tariffs on China were doubled to 20 percent – meaning certain goods from China are now subject to a 45 percent tariff rate.
Notably, 54 percent of grocery shoppers surveyed by FMI – The Food Industry Association said that tariffs were the top concern in March versus 49 percent in January, FMI Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig said during a webinar last week...
