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Economy
15 February
US retail sales get post-holiday bounce
Overall retail sales rose 3% in January, the US Commerce Department reported.

Photo by Korie Cull on Unsplash
In some years, January is a time of lull for retailers. But these unusual times gave way to another twist, as retail sales rose to start the year, providing a post-holiday boost to retailers who have been fretting over a pullback in consumer demand.
The U.S. Commerce Department released the following data for January 2023 on Wednesday:
- Overall retail sales rose 3% on a monthly basis, totaling $697.0 billion.
- On an annual basis, retail sales rose 6.4%.
- Nonstore retailers, which includes ecommerce, rose 1.3% for the month and 3% for the year.
- Core inflation, which leaves out, auto and food measures, was up 1.5% from December and 4.8% for the year, according to the National Retail Federation.
The report showed strong sales, indicating that demand is continuing apace despite the collision of interest rates and inflation. Nearly every category measured by the Commerce Department reported an increase in sales for the month. In particular, clothing, sporting goods and general merchandise stores posted strong results.
The only exception was electronics, which saw sales fall 6.3% on an annual basis following a period of heavy holiday discounting. While supply chain issues continue in this category, it could also be a sign of consumers pulling back on big-ticket purchases, said GlobalData Managing Director Neil Saunders.
“Consumer spending clearly picked up after the holidays,” said National Retail Federation Chief Economist Jack Kleinhenz, in a statement. “Sales were helped along by job and wage growth, slightly lower inflation and unusually warm and dry weather that preceded February’s record cold. A large cost-of-living adjustment gave Social Security beneficiaries more money to spend, and many consumers were still drawing on savings built up during the pandemic. January made up for the softer pattern of spending in December that came after early shopping pulled holiday spending forward this past fall.”
Despite the increases, concerns remain about the growth trends, especially as retailers observe consumers buying lower quantities of goods as a result of rising prices.
“Retail has started the new year on a positive note, with a solid increase in total sales,” Saunders said. “Retailers will see this as a win as it is clear that, despite a modest slowdown in growth compared to most of last year, there has been no significant erosion in consumer spending power. That said, the annual rate of growth – which is running at 6.4% – is only modestly above the inflation rate for retail, which means volume growth is much thinner and, in some categories, is negative.”
Saunders concluded that it was a “satisfactory” start to the year, but concerns remain that it may only prove to be a breather. Economic forecasts are calling for growth to curtail, and Saunders added that “question marks remain over whether performance will deteriorate as this year progresses.”
In the context of recent months, however, this was a fairly status quo report. Paired with Tuesday's Consumer Price Index report that showed only a slight decrease of inflation and another strong jobs report this month, the data to start the year indicates that the economic picture remains the same as it was for the second half of 2022: A robust job market is driving consumer spending, but inflation is remaining stubborn on the way down.
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Marketing
16 March
Asos to expand retail media network with sponsored search ads
The online fashion retailer is partnering with Criteo to scale advertising through its website and app.
Photo by Parker Burchfield on Unsplash
A top online fashion retailer is poised to expand its retail media network.
The news: Asos is set to partner with Criteo on retail media to provide advertising opportunities for endemic brands across the retailer’s app and website. The three-year agreement is the latest in a series of deals over the last year for Criteo, which is powering retail media networks for a range of retailers, such as Best Buy and Michaels. The network will harness first-party data from Asos to reach customers.
How it works: Asos will provide the following advertising products through its marketplace:
- Sponsored Ads, a new addition to the network, will enable targeting of ads within search and product pages. Ads will be placed within a curated edit of 70,000 products, which are sourced from nearly 900 third-party brands, as well as Asos’ in-house labels.
- On-site display ads will extend an existing format on Asos under Criteo’s purview. These are designed to increase brand awareness at the point of sale.
- Off-site ads will also be provided by Criteo. These extend the ability to target ads from Asos across thousands of sites and connected TV.
Along with the introduction of Sponsored Ads, the companies said the partnership will lead to improved targeting and measurement. Criteo will also support sales efforts in key markets, as they work together to drive “mid-to-long-tail” brand targets, as well as agency demand.
Initially, the ads will be available in the UK, US, France and Germany,
Key quote from Asos Media Group Director Elton Ollerhead: "The ASOS vision is to become the go-to global destination for fashion-loving 20-somethings and we want to take brands on the journey with us, helping advertisers showcase their products through our fashion lens. Criteo's technology is proven at scale and designed for retail, which opens up enormous opportunity for brand advertisers across our key markets."
In vogue: Retail media is in fashion among advertisers, and this deal shows how it is extending to a variety of retail categories. Asos is bringing Amazon-style search and product advertising to its marketplace, offering a way to reach shoppers right alongside listings by using data that is collected from the people on that site. By 2024, retail media spend is expected to grow to $61.15 billion, and account for nearly 20% of digital ad spending, according to eMarketer. The move to scale through Criteo figures to set Asos up for that coming wave of growth.
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