Total retail sales

Total retail sales reached $5.80 trillion in 2024, representing a 0.3% increase from the previous year. This modest growth reflects a continued normalization of consumer spending patterns following the exceptional pandemic-driven surge. Consumer confidence has stabilized amid moderating inflation and steady employment levels, supporting consistent retail activity. However, elevated interest rates and persistent housing costs have created headwinds for discretionary spending, particularly in categories like furniture and electronics. The shift toward experiential spending continues to influence retail composition, with services gaining share relative to goods purchases.

Total retail sales have demonstrated remarkable resilience over the past five years through 2024, with particularly notable performance during the pandemic period. The most significant surge occurred in 2021, when retail sales jumped 12.0% to $5.81 trillion, driven by unprecedented fiscal stimulus, pent-up demand, and accelerated adoption of e-commerce. This represented the largest single-year increase in the retail industry's history, reflecting both the severity of the economic disruption and the scale of the policy response.

The pandemic fundamentally altered consumer behavior, with a dramatic shift toward online purchasing and changes in spending categories. Essential goods retailers experienced sustained demand growth, while discretionary categories faced initial declines followed by sharp recoveries. Supply chain disruptions and inventory shortages created artificial scarcity in certain segments, contributing to both price increases and delayed purchases that supported subsequent growth periods.

Following the 2021 peak, retail sales growth has moderated significantly. The 2022 performance showed a 0.9% increase to $5.86 trillion, while 2023 experienced a slight contraction of 1.3% to $5.79 trillion as consumers adjusted to normalized conditions and elevated price levels. The 2024 performance of 0.3% growth to $5.80 trillion demonstrates this continued adjustment period, reflecting the unwinding of pandemic-era distortions and the impact of monetary policy tightening on consumer spending capacity.

Throughout this period, the composition of retail sales has evolved substantially. E-commerce penetration accelerated by several years, reaching levels that might have taken a decade to achieve under normal circumstances. Traditional department stores and mall-based retailers faced additional pressure, while big-box retailers and grocery chains strengthened their market positions. The integration of online and offline channels became critical for competitive success across all retail categories.