US Retail Sales Trends: E-commerce Surge and Resilient Consumer Spending in 2024

Executive Summary:

The U.S. retail sector displayed resilience throughout 2024, driven by robust e-commerce growth and steady consumer spending, despite economic uncertainties such as inflation, high interest rates, and rising credit card debt. The U.S. Department of Commerce rsquo;s Census Bureau reported monthly retail sales across core segments (excluding food, auto, and fuel), showing year-over-year growth across most categories.

Key findings include:

• E-commerce Growth: Online sales consistently outperformed other segments, with double-digit growth during key months like December (+10.2%) and April (+12.8%).
• Holiday Season Strength: The 2024 holiday shopping season exceeded expectations, bolstered by early seasonal promotions, credit-based purchasing, and consumer resilience.
• Segment Performance: Apparel (+4.5%), home goods (+7.7%), and electronics (+5.4%) saw notable gains during the year, while department stores and sporting goods faced challenges.
• Consumer Behavior: Shoppers leaned toward value-oriented purchases, utilizing discounts, ldquo;buy now, pay later rdquo; options, and off-price retailers to stretch their budgets.
• Economic Outlook: High consumer debt and cautious spending habits were balanced by stable employment, wage growth, and moderating inflation. However, analysts predict a slower retail growth trajectory in 2025, with concerns about reduced discretionary spending and margin pressures from promotional pricing.