Retail Sales Muted in April as Front-Loading Fatigue Sets In

Consumer spending, the key engine of the economy in the United States, is in danger of stalling.

The U.S. Census Bureau released retail data Thursday (May 15) showing that sales growth slowed markedly after pre-tariff front-loading of consumer spending, especially for expensive, big-ticket items such as cars and appliances.

Overall retail sales were up 0.1% month over month, on the heels of an upwardly revised 1.7% boost in March. Automobile-related sales were down 0.1%, having leaped 5.5% in March.

Retail sales saw growth of 5.2% compared to April 2024. Sales for the three months from February to April rose by 4.8% compared to the same period in 2024. Retail trade sales, excluding food services, amounted to $625 billion, showing a slight decline of 0.1% from March but a 4.7% increase compared to the same period in 2024.

Sales of building materials and garden equipment reached $41.4 million in April, reflecting a 0.8% monthly increase and a 3.2% rise compared to April 2024. Meanwhile, furniture sales rebounded from a 0.1% decline in March, posting a 0.3% gain in April and a 7.8% increase year over year. Similarly, electronics and appliance sales rose 0.3% on a monthly basis but showed only a marginal 0.1% increase compared to April 2024.

A Pullback in Discretionary Spending

Despite these gains, most other industries experienced declines in monthly sales, especially in categories that would be considered discretionary. The largest drops were seen in sporting goods, hobby, musical instrument, and book stores (-2.5%) and miscellaneous store retailers (-2.1%).

Clothing and accessories store sales fell 0.4% in April, following a 1.1% increase in March.

There are some indications that consumers are triaging their spending on what they eat — and where. In the food industry, grocery store sales declined by 0.1% in April, marking the second consecutive monthly decrease. In contrast, food services and drinking places saw a 1.2% sales increase in April and a robust 7.8% year-over-year growth. For 2025 so far, these establishments have recorded a cumulative 4% increase in sales.

Non-store retailers, a category that includes eCommerce, logged 0.2% gains in sales in April compared to March, which indicates that consumers are still turning to online channels to find what they need, during a period marked by holidays such as Easter, which in turn had promotional activity attached to those days.

The shift to digital channels was illuminated by Walmart’s latest earnings results, which were also released on Thursday. The company’s eCommerce sales were up 21%. During a conference call with analysts, CEO Doug McMillon said each of the company’s segments delivered eCommerce growth of at least 20%.

The burdens of tariffs and inflation, in general, on consumers’ paychecks, and their ability to keep spending at retailers, have become apparent in other ways. More individuals are turning to project-based or gig economy work to supplement their income, and by extension, keep meeting basic living expenses and spending at merchants.

The PYMNTS Intelligence report “Do the (Side) Hustle: Four in 10 U.S. Consumers Seize the Opportunity to Earn More Income” found that 40% of individuals are taking on side work, and 22% said the most important reason they have done so is to pay their bills. That figure rose to 34% among consumers who live paycheck to paycheck with difficulties paying bills.