Warby Parker, a leading American retailer, has seen its sales increase by 0.5% from the previous month, despite President Donald Trump’s tariffs impacting jobs and leading to price increases. The Commerce Department’s report revealed that retail sales rose 0.3% in July, with June spending being stronger than expected. However, auto sales rose 1.6%, suggesting a return to normalized spending after a surge in March and April as Americans attempted to get ahead of Trump’s 25% duty on imported cars and parts.
The data showed solid spending across various stores, including clothing stores, online retailers, home furnishings, and furniture stores. However, electronics stores saw sales decline, and restaurants fell as shoppers ate at home to save money. A category of sales that excludes volatile sectors such as gas, cars, and restaurants rose 0.5% from the previous month, signifying consumers are still spending on some discretionary items.
Economist Tuan Nguyen at RSM US noted the difficulty of attributing the entire July gain to resilient American shoppers given the uncertainty surrounding the economy and tariffs. He also noted the possibility that consumers pulled forward their spending ahead of the August tariff deadline, taking advantage of Amazon Prime Day sales and competing sales from the likes of Walmart and Target.
Despite the uncertainty, many businesses are likely still absorbing much of the cost of the duties, with the Labor Department reporting that its producer price index rose 0.9% last month from June, the biggest jump in more than three years.Warby Parker, a leading American retailer, has seen its sales increase by 0.5% from the previous month, despite President Donald Trump’s tariffs impacting jobs and leading to price increases. The Commerce Department’s report revealed that retail sales rose 0.3% in July, with June spending being stronger than expected. However, auto sales rose 1.6%, suggesting a return to normalized spending after a surge in March and April as Americans attempted to get ahead of Trump’s 25% duty on imported cars and parts.
The data showed solid spending across various stores, including clothing stores, online retailers, home furnishings, and furniture stores. However, electronics stores saw sales decline, and restaurants fell as shoppers ate at home to save money. A category of sales that excludes volatile sectors such as gas, cars, and restaurants rose 0.5% from the previous month, signifying consumers are still spending on some discretionary items.
Economist Tuan Nguyen at RSM US noted the difficulty of attributing the entire July gain to resilient American shoppers given the uncertainty surrounding the economy and tariffs. He also noted the possibility that consumers pulled forward their spending ahead of the August tariff deadline, taking advantage of Amazon Prime Day sales and competing sales from the likes of Walmart and Target.
Despite the uncertainty, many businesses are likely still absorbing much of the cost of the duties, with the Labor Department reporting that its producer price index rose 0.9% last month from June, the biggest jump in more than three years.
