Online retail sales grew in May as total retail sales slipped compared to April, according to Digital Commerce 360 analysis of data from the U.S. Department of Commerce.
Total sales have decreased in back-to-back months since March as the Trump administration has announced multiple changes to tariffs it has imposed on products from other countries. However, the decrease in total May and April sales is only compared to the months directly preceding them. Compared to 2024, total U.S. retail sales have increased every month so far in 2025.
That’s not the case when excluding automobile and gasoline sales, though. When factoring in those exclusions, retail sales in May 2025 decreased compared to the same month in 2024. They also declined compared to April 2025.
As such, May 2025 marked the first time since April 2020 and May 2020 that retail sales (with those exclusions) have not increased year over year, according to Digital Commerce 360 analysis of Commerce Department data. Those were the first two full months in which the U.S. faced restrictions during the COVID-19 pandemic.
However, the dip was not nearly as severe in May 2025. Without automobile and gasoline sales, total retail sales in May were about $529.84 billion. That’s down slightly from $530.37 billion the prior year.
In May 2020, though, those sales were $362.67 billion, down from about $376.01 billion. And in April 2020, sales had decreased year over year to $308.26 billion from $350.84 billion.
“The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating,” said Matthew Shay, president and CEO of the National Retail Federation, in a statement. “While momentum remains, the nature of consumer spending is shifting as economic uncertainty increases.”
Online retail sales in May 2025
In contrast to the total sales declines, May online retail sales have only grown this year, both year over year and month over month, Digital Commerce 360 analysis shows. The Commerce Department said nonstore and other online retailers’ sales grew 8.3% year over year in May.
Commerce Department data indicates that May online and other nonstore retail sales totaled $125.492 billion. That’s elevated compared to April 2025’s $123.38 billion and March’s $123.85 billion. It’s also an increase compared to May 2024’s $116.92 billion.
The NRF and CNBC said nonstore and other online sales in May increased 1.81% month over month and 29.04% year over year.
CNBC and NRF’s Retail Monitor exclude automobile and gasoline from their calculation of total retail sales. Additionally, they identify a calculation for “core” retail sales that excludes restaurants in addition to automobile dealers and gas stations.
May core retail sales, they said, grew compared to both April 2025 and May 2024. Compared to April 2025, May core retail sales were mostly flat, growing 0.1%. And compared to May 2024, core retail sales increased 3.9%.
That compares with a 0.9% month over month increase in April, as well as 7.11% year-over-year growth.
NRF says the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.
Based on that, Jack Kleinhenz, NRF chief economist, said in a statement that May showed continued growth in core retail sales “despite a downturn in overall sales amid on-again, off-again tariffs on imported merchandise.”
“We’re continuing to see growth for core retail sales this year at about the same pace as last year,” Kleinhenz said. “Despite a soft labor market, aggregate consumer spending has been supported by wage gains and an improvement in the stock market. Consumers are seeing their way through the uncertainty with trade policies, but I expect the inflation associated with tariffs to be felt later this year. Consumers remain very price sensitive, and those costs are likely to weigh heavily on consumer budgets.”
NRF monthly sales growth breakdown by category
Sales increased month over month in almost all retail categories
- Online and other nonstore sales grew 1.81% month over month in May.
- Sporting goods, hobby, music and book stores (up 0.42%)
- General merchandise stores (up 0.4%)
- Grocery and beverage stores (up 0.46%)
- Health and personal care stores (up 0.06%)
- Clothing and accessories stores (up 0.67%)
- Electronics and appliance stores (down 1.98%)
- Furniture and home furnishings stores (down 0.24%)
- Building and garden supply stores (down 2.3%)
Sales grew year over year in almost all categories
- Online and other nonstore sales increased 28.04% year over year in May.
- Sporting goods, hobby, music and book stores (up 8.21%)
- General merchandise stores (up 4.63%)
- Grocery and beverage stores (up 4.53%)
- Health and personal care stores (up 3.85%)
- Clothing and accessories stores (up 3.21%)
- Electronics and appliance stores (up 2.58%)
- Furniture and home furnishings stores (down 0.1%)
- Building and garden supply stores (down 7.31%)
Click here to read last month’s update on U.S. online retail sales.
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