Consumer Behavior

Retail sales up in January

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February 16, 2023

U.S. retail sales, not including automotive, were up 8.8% in January compared to a year ago, and e-commerce sales were up over 8.4% year over year, according to the Mastercard SpendingPulse report.

In-store sales were up 8.9%, year over year, according to a press release. The results indicate consumer spending remains resilient, according to Steve Sadove, Mastercard senior advisor and former Saks Inc. CEO.

"Mastercard SpendingPulse insights show that the overall retail story remains largely positive with January posting a solid month of growth across the country," Sadove said in the release.

After nine months of stagnant growth, sales of jewelry were up 6.5% year over year, stated the release.

"The primary factor driving spending decisions is income — not just income today but the expectation for income tomorrow." Michelle Meyer, North America chief economist, Mastercard Economics Institute, said in the release. "The strength in the labor market remains a critical support for consumer purchasing power and we're seeing this reflected in our SpendingPulse insights for January."