The nation's largest retailers posted stronger-than-expected fourth quarter results, demonstrating the resilience of consumer spending despite persistent inflation and higher interest rates.
Same-store sales across major retail chains grew an average of 4.2% compared to the prior year, beating analyst expectations of 3.1% growth. Online sales continued to grow faster, up 8.7% year-over-year.
Consumer Confidence Holds
The strong results suggest that consumers, particularly those in middle and upper income brackets, remain willing to spend despite economic uncertainties. Employment gains and moderating inflation have helped support household budgets.
"The American consumer has proven remarkably resilient," said retail analyst Sarah Mitchell. "While there's been some trading down in certain categories, overall spending volumes have held up better than many predicted."
Category Performance
Electronics and home improvement categories showed particular strength, while apparel sales were more modest. Luxury goods retailers reported solid performance, indicating that higher-income consumers continue to spend freely.
Looking ahead, retailers expressed cautious optimism for 2026, citing stable employment and potential interest rate cuts as supportive factors. However, several noted they are closely monitoring consumer credit metrics.