• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
RetailEconomy

Retail sales flatlined in June as the unstoppable U.S. shopper took a pause

By
Anne D'Innocenzio
Anne D'Innocenzio
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Anne D'Innocenzio
Anne D'Innocenzio
and
The Associated Press
The Associated Press
Down Arrow Button Icon
July 16, 2024, 12:44 PM ET
Woman looking at product in store aisle
Shoppers took a pause in June, with retail sales staying flat month-to-month.Getty Images

Shoppers paused their spending in June from May, defying economic forecasts for a pullback and proving their resilience in the face of an uncertain economy

Recommended Video

Retail sales were unchanged in June from May, after being revised upward to a 0.3% increase in May, according to the Commerce Department. Last month, April sales were revised downward — a 0.2% decline, from unchanged. Sales rose 0.6% in March and 0.9% in February. That comes after sales fell 1.1% in January, dragged down in part by inclement weather.

Sales at gas stations and auto dealerships weighed down the figure. Excluding gas prices and auto sales, retail sales rose 0.8%. Sales at gas stations were down 0.3%, while business at auto stores fell 0.2%, as dealerships were disrupted by a multiday outage after cyberattacks on a software supplier.

The snapshot offers only a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category – restaurants – registered an uptick of 0.3%.

Elsewhere, plenty of areas were strong. Online sales rose 1.9%, while clothing and accessories store sales rose 0.6%. Department stores posted a 0.6% increase. Stores selling building materials and garden supplies rose 1.4%.

Control retail sales, which excludes food service and drinking places, auto dealers, gas stations, construction material and garden supply stores, and a few other volatile categories, and which goes into the calculation of nominal gross domestic product, rose a solid 0.9% in the month.

Lower inflation pushes down sales

Government retail data isn’t adjusted for inflation, which declined 0.1% from May to June, according to the latest government report. High inflation helps to inflate retail sales figures.

“This was a legitimately strong report and inconsistent with a consumer who is on the brink of collapse,” Richard de Chazal, a macro analyst at William Blair, wrote in a report. “This spending is being driven by still positive (though moderating) real income growth, from a consumer that is still widely employed.”

But he added that spending is inconsistent with a host of retailers still seeing more value-conscious consumers who are trading down and generally more thoughtful about their purchases. He also said lower-income consumers, having spent their pandemic savings, are increasingly using credit cards to maintain consumption, resulting in higher delinquency rates and falling levels of confidence, as inflation has moderated along with real income growth.

Federal Reserve Chair Jerome Powell said Monday that the Federal Reserve is becoming more convinced that inflation is headed back to its 2% target and said the Fed would cut rates before the pace of price increases actually reached that point.

Last week, the government reported that consumer prices declined slightly from May to June, bringing inflation down to a year-over-year rate of 3%, from 3.3% in May. June marked a third straight month of cooling deflation, a sign that the worst price spike in four decades is steadily fading and may soon bring in interest rate cuts by the Federal Reserve.

So-called “core” prices, which exclude volatile energy and food costs and often provide a better read of where inflation is likely headed, climbed 3.3% from a year earlier, below 3.4% in May.

Meanwhile, America’s employers delivered another healthy month of hiring in June, adding 206,000 jobs and once again underscoring the U.S. economy’s ability to withstand high interest rates.

The retail sales report comes as there’s been some upheaval in the retail landscape.

Earlier this month, the parent company of Saks Fifth Avenue agreed to buy upscale rival Neiman Marcus Group, which owns Neiman Marcus and Bergdorf Goodman stores, for $2.65 billion, with online behemoth Amazon holding a minority stake.

The new entity will be called Saks Global, creating a luxury powerhouse at a time when the arena has become increasingly fragmented with different players, from online marketplaces that sell luxury goods to upscale fashion and accessories brands opening up their own stores.

Macy’s announced on Monday it was terminating its monthslong buyout talks with two investment firms, citing a substandard offer and the lack of certainty over financing. The department store chain alleged that Arkhouse Management and Brigade Capital didn’t disclose the highest purchase price they were prepared to pay.

Macy’s said it will focus on its own turnaround efforts. That previously unveiled plan includes closing 150 Macy’s stores over the next three years and upgrading the remaining 350 stores.

And grocery chain Stop & Shop, squeezed by rivals like Walmart and Aldi, said Friday it will close 32 underperforming grocery stores in the Northeast by the end of the year.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Anne D'Innocenzio
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

HealthFood and drink
Chains like Sweetgreen and Chipotle are finally realizing they need to look beyond the ‘slop bowl’
By Phil WahbaFebruary 27, 2026
7 hours ago
burger king
AIOpenAI
Burger King tests OpenAI-powered headsets that will track the friendliness of drive-through workers
By Dee-Ann Durbin and The Associated PressFebruary 27, 2026
11 hours ago
Two restaurant workers wearing black stand in front of a silver "Flippy" fry station.
AIAutomation
Meet your new robot fry cooks: Inside the $28 billion race to disrupt White Castle and Jack in the Box
By Sasha RogelbergFebruary 26, 2026
1 day ago
Customers in the electronics section at Walmart on Black Friday in Columbus, Ohio, US, on Friday, Nov. 28, 2025. Americans are planning to spend more this holiday season than last year, according to credit reporting firm TransUnion. Photographer: Brian Kaiser/Bloomberg via Getty Images
C-SuiteLeadership
McKinsey studied 61 growth companies that outperformed their peers through COVID, inflation, and labor shocks. Here’s what they all had in common
By Geoff ColvinFebruary 26, 2026
2 days ago
The Home Depot storefront
InvestingHome Depot
Home Depot CEO says with the housing market stalemate, ‘our customers are telling us that they’re not investing’
By Jacqueline MunisFebruary 25, 2026
3 days ago
CommentaryCulture
Gen Z’s enthusiasm for all things touchable is resurrecting the analog economy—and costing parents
By Luba KassovaFebruary 24, 2026
3 days ago

Most Popular

placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt robot vacuum maker iRobot says Elon Musk’s vision of humanoid robot assistants is ‘pure fantasy thinking’
By Marco Quiroz-GutierrezFebruary 25, 2026
2 days ago
placeholder alt text
Success
Jeff Bezos says being lazy, not working hard, is the root of anxiety: ‘The stress goes away the second I take that first step’
By Sydney LakeFebruary 25, 2026
2 days ago
placeholder alt text
Commentary
'The Pitt': a masterclass display of DEI in action 
By Robert RabenFebruary 26, 2026
1 day ago
placeholder alt text
Economy
Trump claims America is ‘winning so much.’ The IMF agrees, adding that Trump’s trade policies are the only thing holding it back from even more
By Tristan BoveFebruary 26, 2026
1 day ago
placeholder alt text
Economy
It’s more than George Clooney moving to France: America is becoming the ‘uncool’ country that people want to move away from
By Nick LichtenbergFebruary 27, 2026
17 hours ago
placeholder alt text
Success
Gen Z Olympic champion Eileen Gu says she rewires her brain daily to be more successful—and multimillionaire founder Arianna Huffington says it really does work
By Orianna Rosa RoyleFebruary 25, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.