Retail sales held steady in August. But much of the credit for this goes to inflation, according to the latest research from Colliers.
According to Colliers’ August look at U.S. retail foot traffic and sales, retail sales rose 3.5% year-over-year in August. This is largely because of inflation, though, with Colliers reporting that underlying volume growth was just 0.4%, with cautious consumers leaning into online shopping for price comparison and convenience.
Colliers reported that apparel sales jumped 7.6% this August when compared with the same month a year ago, making this sector one of the best-performing categories. Yet foot traffic to clothing stores rose just 4.66%, suggesting that higher average transaction sizes rather than volume drove the lift.
Not all retail sectors saw the same strength, of course. According to Colliers’ report, home improvement sales fell sharply as DIY projects were sidelined amid other seasonal spending with visits down 0.40%. Meanwhile, furniture and home furnishings grew a modest 2.9% in sales and 2.86% in traffic, with the increase in purchases probably a result of consumers wanting to spend now before tariffs increase prices.
Colliers said that theaters and music venues saw foot traffic plunge 26.91% this August when compared to the same month a year earlier, but dwell times at these venues remained high, showing continued engagement among a smaller audience. Additionally, restaurant visits ticked up just 0.29%, while food store sales rose 2.7%, signaling continued caution around food spending amid inflation.
Not surprisingly, certain brands saw stronger foot traffic than others. Ranking as the top retail chain for foot traffic in August was Addidas, with a 13.6% jump in traffic compared to August of last year. Michaels ranked second, with a foot traffic jump of 13.3%, while Goodwill came in third with an increase of 11.7%.
Other retailers with strong increases in foot traffic include Hobby Lobby (11.7%), GameStop (10.6%), Ollie’s Bargain Outlet (9.8%) and Staples (9.4%).
