WASHINGTON — Retail sales continued to climb in March, with the health and personal care category emerging as a standout performer as consumers directed tax refund dollars toward pharmacy and wellness needs, according to new National Retail Federation data.
The CNBC/NRF Retail Monitor, powered by Affinity Solutions, showed that total retail sales, excluding auto dealers and gas stations, rose 0.4% month over month on a seasonally adjusted basis and 6.59% year over year. Core retail sales, which exclude restaurants, increased 0.41% month over month and 7.05% year over year.
“Retail sales grew for a sixth consecutive month in March as the first wave of tax refunds offset higher gas prices resulting from the conflict in the Middle East,” NRF President and CEO Matthew Shay said. “Despite record low consumer sentiment and the highest inflation rate in two years, consumers continued to spend on household priorities. As consumers focus on costs, retailers remain laser-focused on keeping prices competitive and affordable.”
For chain drug retailers, the report reinforces the ongoing strength of pharmacy-adjacent categories. Health and personal care stores recorded the strongest gains across segments, up 0.51% month over month and 12.25% year over year, underscoring sustained demand for over-the-counter products, wellness solutions and everyday health essentials.
The data suggests that even in a pressured economic environment, consumers are prioritizing spending in categories tied to personal health, self-care and preventive wellness. That trend aligns with ongoing momentum in OTC, vitamins and supplements, and broader front-end categories, which continue to drive traffic and basket size in drug stores.
Other discretionary categories also performed well, including clothing and accessories stores, up 10.89% year over year, and sporting goods, hobby, music, and book stores, up 10.88%. Digital products rose 9.39% year over year, while general merchandise stores increased by 8.77%.
More essential categories showed steadier, lower growth. Grocery and beverage stores were up 3.78% year over year, reflecting continued consumer focus on value and necessity spending. Meanwhile, building and garden supply stores were the only category to post a year-over-year decline, down 0.47%.
A key driver behind March’s performance was a surge in tax refunds. According to the IRS, the average refund reached $3,521 as of late March, up 11.1% from last year following recent tax law changes. That influx of cash appears to have supported discretionary and health-related purchases even as gasoline prices rose.
For pharmacy operators, the sustained outperformance in health and personal care underscores the strategic importance of front-end optimization, private-label expansion and value positioning. As consumers remain cost-conscious yet committed to maintaining health and wellness routines, retailers that deliver both affordability and convenience are likely to continue capturing share.
Unlike survey-based data from the U.S. Census Bureau, the Retail Monitor is based on anonymized credit and debit card transaction data compiled by Affinity Solutions and is not subject to revision.
The March results point to a resilient but highly selective consumer, with pharmacy and health-focused spending continuing to outperform broader retail trends.
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