Retail sales rise in March as tax refunds offset rising gas prices

By Edited by Megan Smalley

The CNBC/NRF Retail Monitor reports that retail sales were up 6.59% year over year unadjusted in March.

The National Retail Federation reports that retail sales rose in March as consumers received higher-than-usual tax refunds that made up for increased gasoline prices. According to the CNBC/NRF Retail Monitor, total retail sales, excluding automobile dealers and gasoline stations, were up 0.4% seasonally adjusted month over month and up 6.59% unadjusted year over year in March. That compares with increases of 0.28% month over month and 6.24% year over year in February.

The Retail Monitor calculation of core retail sales was also up 0.41% month over month in March and up 7.05% year over year. That compares with increases of 0.27% month over month and 5.87% year over year in February.

“Retail sales grew for a sixth consecutive month in March as the first wave of tax refunds offset higher gas prices resulting from the conflict in the Middle East,” says NRF President and CEO Matthew Shay. “Despite record low consumer sentiment and the highest inflation rate in two years, consumers continued to spend on household priorities. As consumers focus on costs, retailers remain laser-focused on keeping prices competitive and affordable.”

NRF reports that total retail sales were up 6.18% year over year during the first quarter, and core sales were up 6.14%. The numbers come as the IRS says 2026 tax refunds averaged $3,521 as of late March, up 11.1% from 2025 following changes in tax law passed last year.

March sales were up in all but one of nine categories on a yearly basis, led by health and personal care stores, clothing stores and sporting goods stores, and were up in all but two categories on a monthly basis. Highlights from key sectors include:

  • Health and personal care stores were up 0.51% month over month seasonally adjusted and up 12.25% year over year unadjusted.
  • Clothing and accessories stores were up 0.57% month over month seasonally adjusted and up 10.89% year over year unadjusted.
  • Sporting goods, hobby, music and book stores were up 0.4% month over month seasonally adjusted and up 10.88% year over year unadjusted.
  • Digital products were up 1.42% month over month seasonally adjusted and up 9.39% year over year unadjusted.
  • General merchandise stores were up 0.38% month over month seasonally adjusted and up 8.77% year over year unadjusted.
  • Electronics and appliance stores were up 0.06% month over month seasonally adjusted and up 7.67% year over year unadjusted.
  • Grocery and beverage stores were up 0.39% month over month seasonally adjusted and up 3.78% year over year unadjusted.
  • Furniture and home furnishings stores were down 0.11% month over month seasonally adjusted but up 3.54% year over year unadjusted.
  • Building and garden supply stores were down 0.08% month over month seasonally adjusted and down 0.47% year over year unadjusted.