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August 2025 Retail Sales Report: Consumers Shift Toward Necessities

The August 2025 Retail Sales Report highlights how shifting consumer behaviors are impacting spending patterns and retail real estate. While overall sales posted a year-over-year gain, inflation-adjusted figures reveal early signs of pullback in discretionary categories.

🔹 Core Retail Sales +4.4% YoY, inflation-adjusted dip 🔹 Grocery Sales Hit Record High as dining shifts home 🔹 Restaurant & Bar Spending Down 4th time in 8 months

Despite mounting pressures from tariffs and higher costs, necessity-based retailers continue to show resilience, while discretionary categories face headwinds. These dynamics could reshape leasing activity and investor sentiment heading into the second half of 2025.





August 2025 Retail Sales Report graphic showing 4.4% YoY core retail sales growth, record grocery sales, and restaurant spending decline.

 
 
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