Retail sales rise in March as tax refunds offset gas prices

WASHINGTON — Retail sales increased in March, supported by higher tax refunds that helped offset rising gasoline prices, according to the CNBC/NRF Retail Monitor.

“Retail sales grew for a sixth consecutive month in March as the first wave of tax refunds offset higher gas prices,” said Matthew Shay, president and CEO of the National Retail Federation.

Total retail sales, excluding automobile dealers and gasoline stations, rose 0.4% month over month on a seasonally adjusted basis and 6.59% year over year unadjusted. That compares with gains of 0.28% month over month and 6.24% year over year in February.

Core retail sales, which also exclude restaurants, increased 0.41% month over month and 7.05% year over year. In February, core sales rose 0.27% month over month and 5.87% year over year.

For the first quarter, total retail sales were up 6.18% year over year, while core sales increased 6.14%.

The report comes as the Internal Revenue Service said average tax refunds reached $3,521 as of late March, up 11.1% from 2025 following changes in tax law.

Sales increased year over year in eight of nine retail categories and rose month over month in seven categories. Health and personal care stores, clothing stores and sporting goods stores led annual gains.

Health and personal care sales rose 0.51% month over month and 12.25% year over year. Clothing and accessories stores were up 0.57% month over month and 10.89% year over year, while sporting goods, hobby, music and book stores increased 0.4% month over month and 10.88% year over year.

Digital products sales rose 1.42% month over month and 9.39% year over year, while general merchandise stores increased 0.38% month over month and 8.77% year over year. Electronics and appliance stores were up 0.06% month over month and 7.67% year over year.

Grocery and beverage stores rose 0.39% month over month and 3.78% year over year. Furniture and home furnishings stores fell 0.11% month over month but increased 3.54% year over year. Building and garden supply stores declined 0.08% month over month and 0.47% year over year.

The Retail Monitor is based on anonymized credit and debit card data compiled by Affinity Solutions.