Retail faced headwinds in February 2025: February retail sales declined 0.9%, and in-store visits dropped 4.7% year-over-year. Core retail, which excludes food service, gas stations, and autos, dipped 0.2%. While a shorter month (compared to last year’s leap year) contributed to the decline, consumer sentiment also softened due to rising economic uncertainty and weather disruptions.

Grocery and home furnishings showed resilience: Grocery foot traffic declined by 1.95%, but essential spending remained relatively stable. Home furnishings saw a modest 1.5% sales increase, benefiting from prior housing market strength. Meanwhile, home improvement retail struggled, with visits down 7.2%, as consumers delayed large-scale projects.

Discretionary spending slowed, except for entertainment: Apparel sales fell 3.2% as seasonal demand weakened and post-holiday promotions tapered off. Electronics stores saw a sharper 9.2% drop, reflecting consumer hesitancy toward big-ticket purchases. However, theaters and music venues saw an 8.03% increase in visits, indicating that experiences remained a priority despite shifting discretionary spending.

Fitness and dining trends divided: Gym visits declined 5.96%, but fitness-related retail sales grew 2.44%, signaling continued demand for at-home wellness solutions. Restaurants, however, struggled with a 7.35% drop in visits as consumers cut back on dining out.