Bolstered by Prime Day deals, Fourth of July spending and early back-to-school shopping, retail enjoyed a sales increase of 4.3% year-over-year in July, with core retail up 4.7%. However, volume growth was softer at just 1.4%, and much of the surge can be attributed to $6.2 billion in pull-forward activity, according to Colliers’ monthly retail foot traffic and sales analysis for July.
“Consumers are still spending, but bargain hunting and bracing for future shocks,” said Colliers.
Home and apparel retailers experienced a boost driven by promotions, but foot traffic diverged during the month. Furniture and home stores saw sales increase 5.8% during the month, and apparel store sales climbed 7.4%. Foot traffic trends were more muted, with furniture visits increasing 2.75% and clothing stores' growing by 3.93%. This suggests selective participation as consumers prioritize value-driven purchases, said the report.
The electronics and home improvement categories both remain soft despite deal events in July, both seeing sales declining. Foot traffic echoed that trend, with electronics visits falling 1.23% and home improvement visits slipping 0.35%. This reinforces consumer hesitation around big-ticket discretionary items, according to Colliers.
Experience categories also experienced softening sales, but dwell times held firm, according to the report. Theaters and music venue traffic fell 5.82% year over year, but average dwell times remained high at nearly 146 minutes. Restaurant visits increased just 0.23%, reflecting modest dining demand amid wider efforts to manage household budgets, according to the report.
The top-performing brands for the month were Hobby Lobby, Staples, Ollie’s Bargain Outlet, Goodwill and Bath & Body Works. Michael's, At Home, GameStop, HomeGoods and Citi Trends also experienced increased visits during July.
Of the 24 retail categories tracked by Colliers, eight saw visits increase during the month, including car washes, clothing, department stores, discount and dollar stores, fitness, furniture and home goods, groceries and restaurants. Among those that saw visits decrease in traffic include hobbies, gifts and crafts.
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