The U.S. retail sector continued to show momentum early in the year, as shoppers kept spending on apparel and electronics in February, according to the latest research from Colliers.
In its February Retail Monthly Foot Traffic & Sales Analysis report, Colliers said that consumers continue to spend time both in physical stores and online when shopping, good news for retailers.
Retail sales rose 3.6% year over year in February, while foot traffic climbed an even stronger 4.7%. Core retail sales performed slightly better, increasing 3.8%. But retail volumes edged up just 1%, a smaller gain that hints at a shift: Consumers are still opening their wallets, but they are doing so with greater intention.
Part of February’s strength came from timing. Early tax refunds gave households a bit of extra cash, helping to support purchases. Even so, spending patterns suggest that many consumers are dividing their money carefully, balancing essentials with small splurges and setting some funds aside.
That balancing act is evident in how different retail categories performed.
Apparel emerged as one of the strongest sectors of the month. Clothing sales jumped 7% compared to a year earlier, while visits to clothing stores surged more than 10%. Warmer weather, aggressive promotions and those early tax refunds all likely played a role in bringing shoppers back into stores. Once there, they lingered: average dwell times hovered around 38 minutes, a sign that consumers were more engaged after a slower start to the year in January.
Not all categories fared as well.
Furniture and home sales dropped 5.6% in February, reflecting continued pressure on big-ticket purchases. Higher borrowing costs and lingering economic uncertainty appear to be weighing on consumers’ willingness to commit to larger expenditures. Interestingly, foot traffic to furniture stores still ticked up slightly, suggesting that shoppers are browsing, even if they’re not yet ready to buy.
Electronics told a different story. Sales in that category rose 4.9%, likely boosted in part by refund-driven purchases. Yet foot traffic dipped modestly, indicating that some of those sales may be happening online rather than in stores.
Taken together, these trends highlight a widening divide in discretionary spending. Consumers seem more willing to spend on smaller, more immediate purchases while holding off on larger, long-term commitments.
Beyond traditional retail, experience-driven spending also showed strength. Visits to attractions increased more than 9%, while theater and music venue traffic jumped nearly 17%. Even as households keep a close eye on budgets, they are still prioritizing outings and entertainment.
At the same time, value remains a powerful draw. Visits to discount and dollar stores rose more than 5%, and grocery store traffic increased just over 2%. These gains underscore the practical side of today’s consumer mindset: shoppers are looking for deals and managing everyday expenses carefully.
For retailers and commercial real estate owners, the message is clear. The consumer is still active, still engaged and still willing to spend. But the days of broad, carefree spending appear to be fading, replaced by a more selective approach.
