3.5 minutes

'It’s reasonable to expect some slowdown from the vigorous 2024 holiday season,' the National Retail Federation's chief economist said.

Online and other nonstore retail sales grew year over year in January 2025, according to data from the U.S. Census Bureau.

However, they decreased slightly compared to December 2024. December benefited from two of the Cyber 5 days extending into the month. The Sunday after Thanksgiving and Cyber Monday were both in December in 2024, leading to 33% growth in online sales during the month.

Despite the decrease, retailers still had strong gains, according to the National Retail Federation.

“It’s reasonable to expect some slowdown from the vigorous 2024 holiday season, so January’s numbers are not a surprise and don’t contradict the consumer spending trends we experienced,” said Jack Kleinhenz, NRF chief economist, in response to the Census Bureau data. “The slower spending reflects weaker payroll growth in January, and higher prices remain a challenge for most households. Cold weather in many parts of the country and wildfires in California were likely headwinds that disrupted demand and consumer patterns. Nonetheless, these results point to a stable economy and provide a solid start to 2025.”

Online retail sales in January 2025

January online and other nonstore sales increased to $123.56 billion in 2025 from $118.07 billion in 2024, according to the Census Bureau. That compares with $125.94 billion in December online retail sales and $125.13 billion in November.

Meanwhile, government data shows total retail sales in January 2025 reached $723.9 billion. Although that’s a slight dip from December (down 0.9%), it’s an increase from the year before (up 4.2% from January 2024).

Additionally, total sales from November 2024 through January 2025 grew 4.2% versus the comparable period a year earlier, the Census Bureau said.

NRF data indicates total retail sales decreased 1.07% in January compared to December. And compared to January 2024, they grew 5.44%.

CNBC and NRF’s Retail Monitor exclude automobile and gasoline from their calculation of total retail sales. Additionally, they identify a calculation for “core” retail sales, which exclude restaurants in addition to automobile dealers and gas stations.

NRF core retail sales data shows a 1.27% drop in January compared to December. Similar to total sales, they grew compared to January 2024 (5.72%).

“Consumers pulled back in January, taking a breather after a stronger-than-expected holiday season,” said NRF president and CEO Matthew Shay. “Despite the monthly decline, the year-over-year increases reflect overall consumer strength as a strong job market and wage gains above the rate of inflation continue to support spending. We’re seeing a ‘choiceful’ and value-conscious consumer who is rotating spending across goods and services and essentials and non-essentials, boosting some sectors while causing challenges in others.”

NRF says the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.

NRF monthly sales growth breakdown by category

Sales dipped month over month in most categories

  • Online and other nonstore sales grew 0.44% month over month in January.
  • Health and personal care stores (up 0.77%)
  • Clothing and accessories stores (down 2.96%)
  • General merchandise stores (down 2.43%)
  • Grocery and beverage stores (down 0.23%)
  • Sporting goods, hobby, music and book stores (down 1.89%)
  • Electronics and appliance stores (down 1.46%)
  • Furniture and home furnishings stores (down 2.03%)
  • Building and garden supply stores (up 0.27%)

Sales grew year over year in most

  • Online and other nonstore sales increased 30.49% year over year in January.
  • Health and personal care stores (up 10.39%)
  • Clothing and accessories stores (up 7.67%)
  • General merchandise stores (up 7.53%)
  • Grocery and beverage stores (up 5.65%)
  • Sporting goods, hobby, music and book stores (up 2.82%)
  • Electronics and appliance stores (up 1.57%)
  • Furniture and home furnishings stores (down 0.27%)
  • Building and garden supply stores (down 0.99%)

Click here to read last month’s update on U.S. online sales.

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