- Retail sales grew 3.7% year-over-year in 2025, outpacing a 1.8% foot traffic gain.
- Apparel and beauty sectors led sales growth, while department stores and electronics lagged.
- Tariffs, promotions, and inflation shaped consumer activity and category performance.
- Top brands by growth included Staples (12.5%), Hobby Lobby (10.2%), and GameStop (9.9%).
2025 Retail Overview
According to Colliers, retail sales finished 2025 on strong footing, posting 3.7% growth compared to the previous year. In-store foot traffic increased by 1.8%, indicating Americans continued to engage with physical retail despite economic caution during the second half of the year.
Seasonal promotions and tariff-related buying pushed volume growth early, but consumer selectivity and dependence on discounting became pronounced by year-end. In-store activity remained steady across most retail categories.
Category Trends
Apparel sales jumped 5.5% for the year, surpassing overall retail sales and supported by a 4.2% rise in visits and nearly 40-minute average dwell times. Beauty and personal care sales peaked at 8.1% growth in December, signalizing prestige-driven demand even when foot traffic was softer. The late-year acceleration mirrored broader December momentum, when holiday-driven spending and promotional activity helped lift overall retail performance despite cautious consumer sentiment.
Department stores saw a 1.3% sales drop despite a 2.5% rise in visits, reflecting ongoing structural struggles. Electronics stores had a 1% decrease in visits and relied heavily on promotional events, with underlying sales up only 0.8%. Grocery sales increased 2.7% with traffic up 3.1%, reinforcing its role as a defensive retail anchor.
Top Performing Retailers
- Staples: 12.5% sales growth
- Hobby Lobby: 10.2%
- GameStop: 9.9%
- Goodwill: 9.8%
- Citi Trends: 7.9%
Other brands outperforming included Whole Foods (6.8%), Barnes & Noble (5.5%), and CVS/pharmacy (5.4%). These retailers benefited from shifting consumer demand and targeted promotions.
Why It Matters
The 2025 recap shows retail sales outpaced foot traffic growth as US consumers stayed active but cautious, responding to discounts, credit incentives, and economic headwinds. Sectors like apparel, beauty, and grocery maintained momentum, while department stores and home improvement lagged. Brands leading in sales growth were aligned with value, essentials, or niche demand, positioning them well for a selective retail environment in 2026.
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