Retail Sales Momentum Lifts December Growth

Retail sales momentum drives December with 3.8% YoY growth. Key apparel and beauty segments lift foot traffic while furniture lags.

February 19, 2026

Nina Dale

Retail sales posted 3.8% year-over-year growth in December, the strongest since 2022.
Apparel and beauty categories outperformed, with apparel sales up 5.4% and beauty up 8.1%.
Foot traffic improved in clothing and grocery, while furniture and restaurant segments saw declines.
Online retail sales surged 6.7%, reflecting strong holiday e-commerce activity.

Key Takeaways

Retail Sales Momentum Carries Into Year-End

Colliers reports that retail sales momentum capped off 2025 with a 3.8% year-over-year (YoY) increase in December—the best monthly growth rate in nearly three years. Core retail rose 4.3% as consumer demand held steady despite challenges like higher credit usage and spending shifts toward value channels. Volumes advanced by 1.4%, while online retail sales momentum drove a 6.7% jump, fueled by Cyber Monday promotions and deal-seeking behavior.

December retail sales rose 3.8% year over year while US retail foot traffic increased 2.8%, signaling strong consumer demand and steady in-store activity heading into 2026.

Apparel and Beauty Steal the Spotlight

Apparel again outperformed, posting a 5.4% YoY sales rise. Layering trends and strong demand for dressy attire bolstered both gifting and holiday spending. Clothing retailers saw a 3.27% uptick in foot traffic, with dwell times holding near 40 minutes. Beauty retailers were among the month’s strongest performers, with sales climbing 8.1% as they became popular holiday gift options.

Furniture, Restaurants, and Segments Lag

Not all retail categories kept pace. Furniture sales declined 3.7%, with related foot traffic down 2.64% and in-store dwell times below 40 minutes. The restaurant category also slipped—visits fell 2.59%—indicating consumer caution around discretionary spending. Contrasting this, grocery store traffic rose 4.41%, showing continued demand for essential goods. This divergence comes as limited retail space availability in many markets continues to shape leasing dynamics, potentially softening the impact of broader cost pressures on brick-and-mortar performance.

Top Performers and Traffic Leaders

Several retail chains reported double-digit YoY traffic increases, including Hobby Lobby (up 17.6%), Citi Trends (11.8%), and Michaels (10.9%). Dollar Tree, Goodwill, and Trader Joe’s also posted notable traffic gains as value and discount segments remained popular amid ongoing economic uncertainty.

December retail foot traffic by segment shows gains in discount stores, fitness, grocery, and clothing, while furniture, restaurants, and electronics posted year-over-year declines.

What’s Next

Retail sales momentum remains solid heading into 2026, particularly in value-oriented and experiential categories. Shifts in consumer preferences—favoring affordable gifting, beauty, and apparel—will likely continue to influence the mix of retail spending and store visits.