Each month, the US Commerce Department publishes national retail sales figures, and the most revealing insights come from what’s known as core retail. This measure strips out food, fuel, and auto sales, allowing a cleaner view of discretionary consumer activity.
Recent data confirms that core retail sales remain in positive territory year-on-year, even after accounting for inflation. This includes discretionary segments like clothing, general merchandise, and e-commerce, which continue to post steady gains. In particular, non-store retailers are showing ongoing momentum. Apparel and speciality retail, both of which had underperformed in earlier periods of consumer belt-tightening, are now seeing stabilisation and, in some cases, healthy rebounds.
This is important because it challenges the assumption that higher rates and inflation would fully suppress discretionary demand. Instead, the data points to a consumer who is still engaged but more selective. Retailers that are positioned with targeted product assortments, strong inventory control, and flexible digital channels are capturing that spend.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
