One month after pulling even in year-over-year sales, the furniture and home furnishings category again fell off pace according to the U.S. Department of Commerce's advance monthly estimates. It was the only measured category which showed a year-over-year decline. For the month, the category, which measures sales in brick-and-mortar stores, totaled an adjusted, estimated $11.35 billion, which was 1.2% off July 2025's adjusted $11.49 billion, but 0.3% ahead of June's preliminary, adjusted $11.32 billion. Year-to-date, the furniture and home furnishings stores category has tallied an unadjusted $76.89 billion in sales, which puts it 1.7% off 2025's pace. Furniture manufacturing returns to growth in July The full retail snapshot for the month showed adjusted, estimated sales of $763.6 billion, or 5% better than July 2025's adjusted $727.18 billion. However, July's totals were 0.6% worse than June's preliminary, adjusted $768.07 billion. Fueled by higher prices at the pump, gas stations surged ahead by 16.2% year-over-year while miscellaneous store retailers were up 10.7% and sporting goods, hobby, musical instrument and bookstores posted a 10.1% gain compared with 2025. Of interest to the furniture and home furnishings category, building material and garden equipment and supplies dealers posted a 6.7% gain vs. July 2025. The DOC's advance estimates are based on a sub-sample of the U.S. Census Bureau's full retail and food services sample. A stratified random sampling method is used to select approximately 5,500 retail and food services firms whose sales are then weighted and benchmarked to represent the complete universe of more than 3 million retail and food services firms. On August 14, 2026, it was reported, Total monthly sales: $271.91B U.S. retail sales in July rose 5.4% year over year, with e-commerce up over 6%, according to figures released Friday by the U.S. Department of Commerce. The increase came on top of a 16% rise in fuel sales, driven largely by rising gas prices in the midst of the Iran war. It was tempered by inflation, though, as year-on-year volume growth was less than 2%, according to GlobalData research. Independence Day and early back-to-school shopping prompted purchases, he also said. Department store sales rose over 4%, electronics rose 5%, apparel rose 5.4%, and sporting goods and hobby stores rose 11%. Home sales were flat. Consumers are spending despite high prices, even though for some inflation has outpaced wage growth. Bank of America economists, speaking to reporters Thursday, said lower-income workers who changed jobs this year who tend to be younger and more likely to jump to higher-paying work are getting raises averaging about 10%. Plus, some households have reduced tax withholding to squeeze more out of their paychecks. This could be funding what some analysts see as consumers' determination to spend money on things that make them happy. Indeed, U.S. consumers aren't saving much right now, and credit card and buy now, pay later debt is up, GlobalData found. "This may seem contradictory when set against a more cautious mindset but, from our research we also see an increasing attitude of throwing caution to the wind," Saunders said. This sets up retailers well for the holidays, and the second half of the year in general, he said.
On August 14, 2026, it was reported, Dillard's Q2 retail sales rose less than 1% year on year to $1.5 billion, with comps up 1%, the company said Thursday. Women's accessories and lingerie sales rose significantly; home rose moderately; and shoes, beauty and men's rose slightly. Sales of children's, juniors and women's apparel fell moderately. The bottom line got a boost from $37.2 million in tariff refunds, which furnished 260 of the 280 basis-point gross margin increase. Gross margin reached 40.9%, and net income, including proceeds from real estate sales, rose 34% to $97.7 million. Dillard's may not have made many more sales compared to a year ago, but it avoided discounts, kept its customers close and, according to GlobalData research, took market share from rival department stores. "Our 1% sales increase points to a somewhat resilient consumer," CEO William Dillard said in a statement. The 1% comp increase beat expectations from UBS analysts, who had expected flat comps. The UBS Evidence Lab's pricing analysis found Dillard's discounting flat year on year. Protecting price did leave some clothes on racks, though, as customers have grown more choosy in an environment defined by rising gas and grocery costs. Inventory at quarter end was up 5% year over year. Some sales of children's apparel probably did go to value retailers, however, Saunders said in emailed comments. Still, margins benefited, as gross margin expanded even without accounting for tariff refunds. The inventory pile-up reflects the tightrope retailers are walking at a time when consumers and retailers both face rising costs.
On July 20, 2026, it was reported, a bankruptcy judge has approved the sale of substantially all of Sleep Number Corp.'s assets and ongoing business operations to Sleep Country Canada Inc., clearing the last major hurdle in a Chapter 11 process that began in June. The deal, which closed a competitive auction process, is expected to close by July 31. The buyer is officially SNBR Inc., a wholly owned subsidiary of Sleep Country Canada. The hearing was held this morning and spanned into the afternoon. The approval came after the buyer sweetened its offer. According to court filings in the case, pending in the U.S. Bankruptcy Court for the Southern District of New York, the total adjusted cash consideration in the deal rose to $122 million from $100 million in Sleep Country Canada's original stalking-horse bid. The increase came from amendments made after Sleep Country Canada's bid was selected as the winner at a July 13 auction, including the removal of a cap on cure costs, the removal of a processor reserve reduction, and the buyer's assumption of severance liabilities and accounts payable. Brooklyn Bedding, part of 3Z Brands, which submitted a qualified bid ahead of the bid deadline, was named back-up bidder. The amount of Brooklyn Bedding's bid was not disclosed in court filings. Sleep Number said its day-to-day operations, including sales, warranty service and delivery, are continuing as normal through the remainder of the process. The company's common shares were previously delisted from Nasdaq, and Sleep Number cautioned that, based on the purchase price in the sale agreement, shareholders are expected to see a complete or significant loss on their investment.
On June 2, 2026, it was reported, Dollar General is seeing an "accelerated rate" of trading down activity with customers, CEO Todd Vasos told analysts on an earnings call Tuesday. While the retailer sees the trend across all cohorts, it has particularly increased among higher income shoppers making over $100,000 a year. The discount chain's core customers cut back on some household expenses including food purchases during the first quarter due to rising gas prices, the executive added. Rural customers are especially feeling the pressure "as they work to minimize trip distance and make trade-offs in their search for everyday affordability," Vasos said. Dollar General's first quarter net sales grew 3.4% year over year to $10.8 billion, according to a Tuesday press release. Same-store sales increased 2%, driven by a 1.4% bump in store traffic and a smaller 0.5% increase in average transaction amount. Dive Insight: Shoppers are feeling the pressure of prices at the gas pump and Dollar General is reaping the benefits. The company expanded its store fleet in Q1 with 190 new stores opened in the U.S. and five new locations in Mexico. All of Dollar General's merchandise categories delivered positive comp sales, with the growth rate in non-consumables outpacing consumables from a monthly cadence perspective again, per Vasos. Dollar General's performance in the quarter was indicative of the various initiatives it is executing on, Jefferies analysts led by Corey Tarlowe said in an emailed note Tuesday. While progress on Dollar General's various initiatives is evident, Telsey Advisory Group analysts highlighted some potential pressures the company faces.
