Consumers continued to power on in June, spending more at gas stations, online, in restaurants and at fashion specialty and department stores.
In-store sales at specialty retailers rose 4.8 percent last month, compared with a year ago, according to the Census Bureau’s monthly reading of retail sales on Thursday. Department stores were up 3.7 percent and non-store retailers, a category dominated by online buying, rose 14.2 percent.
Spending on all retail and food services outlays rose 6.7 percent from June 2025 — a level that while brought down by inflation of 3.5 percent, still shows significant growth at a time of consumer uncertainty.
Spending at gas stations jumped 19.8 percent last month as the now on-again war with Iran disrupted global oil markets, threatening to stoke price increases across the economy.
While fashion brands have been trying to take advantage of their retail momentum, they are also keeping a close eye on the broader economic scene.
John Idol, chairman and chief executive officer of Michael Kors and Jimmy Choo parent Capri Holdings, described consumers this month as “choiceful” at a meeting with analysts and investors.
“Whether they’re at the very top echelon of luxury or whether they’re at a different income level that’s lower than that, everyone’s just being a little bit more thoughtful in their purchase,” Idol said. “They’re still purchasing. They’re still buying. But they’re just making sure that obviously something is exciting first from a design standpoint, that it has quality and value does come into the proposition.”
Idol said the North American customer still felt “relatively healthy,” but acknowledged the concerns on everything from “fuel to groceries to rent.”
“Salaries are still growing and people feel good about the ability to get jobs and work,” he said. “We’re still very optimistic about the North American economy.”
U.S. shoppers have defied expectations of a decline for some time — doggedly spending through trade wars and actual wars.
But EY-Parthenon chief economist Gregory Daco and senior economist Lydia Boussour wrote in an analysis that, while consumers have been resilient, “the foundation underneath it has softened.”
“Higher inflation and moderating wage growth continue to squeeze household purchasing power,” the economists wrote. “Strong asset markets and AI-driven wealth effects are helping sustain aggregate demand, particularly among higher-income households. At the same time, a growing number of consumers are dipping into savings and turning to credit to maintain spending. That support has helped keep consumption resilient, but it is becoming increasingly difficult to sustain, especially for lower-income households.”
