Americans are still spending money, but they are increasingly careful about where they spend it.
That’s one of the key takeaways from Colliers‘ May U.S. Retail Foot Traffic & Sales Analysis, which found that retail sales rose 5.2% year over year in May, the fastest annual growth rate in more than a year. Core retail sales also increased by 4.5%.
At first glance, those numbers paint a picture of a healthy consumer. But dig deeper and a more nuanced story emerges.
According to Colliers, much of the increase in retail spending was driven by inflation, particularly a 25.4% jump in gas station sales. Strip out gasoline purchases and overall retail growth falls to 3.7%. Core retail volume growth, meanwhile, slowed to just 0.2%.
The message is clear: Consumers are still opening their wallets, but they’re feeling increasing financial pressure.
Even so, shoppers continue to spend on purchases they view as worthwhile. Apparel sales climbed 3.6% in May, reflecting consumers’ willingness to indulge in wardrobe refreshes and premium accessories while cutting back on more basic purchases. Foot traffic supported that trend, with visits to clothing retailers rising 4.15% year over year.
Consumers also continue to seek value. Colliers reported that food sales increased just 1.5%, while underlying sales volumes declined 0.7%, an indication that shoppers are trading down and looking for bargains. Visits to discount and dollar stores rose by 7.79%, one of the strongest performances among retail categories.
At the same time, consumers remained cautious about larger discretionary purchases. Furniture store visits increased only 1.06%, while home improvement retailers posted a modest 0.56% gain in foot traffic.
The report also highlighted another enduring trend: Americans continue to prioritize experiences. Visits to theaters and music venues jumped 12.23% from a year ago, the strongest traffic growth of any retail category tracked by Colliers and Placer.ai. Attractions also enjoyed an 8.12% increase in visits, while fitness-related destinations saw traffic rise 2.47%.
The findings suggest that even as household budgets tighten, many consumers are continuing to allocate dollars toward entertainment, leisure and wellness experiences.
Several retail chains posted particularly strong traffic gains in May. Five Below led all retailers with a 16% year-over-year increase in visits. Staples followed with a 12.6% gain, while Ross Dress for Less posted an 11.7% increase. Citi Trends and Adidas each saw traffic rise 10%.
Other notable performers included Barnes & Noble, with a 9.7% increase in visits; GameStop at 8.8%; The Container Store at 8.5%; Bloomingdale’s at 8%; and Hobby Lobby at 7.9%.
Among major retail segments, department stores posted healthy traffic gains of 5.64%, hobbies, gifts and crafts retailers saw visits rise 5.08%, and superstores reported a 2.85% increase.
Not every category experienced growth. Visits to fast-food and quick-service restaurants fell 3.85%, while banks and financial services locations experienced a 3.83% decline. Gas station traffic dropped 2.85%, and gym visits decreased 4.67%.
According to Colliers’ report, consumers are not retreating from the marketplace. Instead, they are becoming increasingly selective, directing their spending toward value-oriented retailers, meaningful purchases and experiences they deem worth the expense.