The latest retail insights are in, and it paints a clear picture of where consumers are spending their money. The January 2026 CNBC/NRF Retail Monitor reveals a story of steady consumer activity, but the real news for small business owners lies within the details. While overall sales show resilience, a closer look at specific sectors highlights significant opportunities for growth.
Here, we dive deeper into the performance of key retail sectors. We’ll explore the impressive year-over-year gains in clothing, digital products, and health and personal care. More importantly, we’ll provide actionable advice to help you capitalize on these trends and position your business for success.
A Tale of Three Sectors: Where Consumers Are Spending
Understanding which retail categories are thriving is the first step toward aligning your business strategy with consumer demand. The January report shows strong year-over-year growth in several areas, but three sectors stand out for their exceptional performance. Let’s examine what’s driving this growth and what it means for you.
Clothing & Accessories: A Strong Comeback
The Numbers: Clothing and accessories stores saw a remarkable 9.39% year-over-year (YoY) increase, along with a modest 0.23% month-over-month gain.
This data suggests that consumers are confidently updating their wardrobes. After periods of focusing on essentials, shoppers are once again investing in fashion, whether for work, social events, or a simple style refresh. This trend presents a golden opportunity for apparel retailers to capture renewed interest and drive sales.
Actionable Advice for Your Business:
- Optimize your inventory: Use your sales data to identify top-performing items and categories. Double down on what sells, but also experiment with micro-trends to keep your assortment fresh. Consider a “test and reorder” strategy for new styles to avoid overstocking while still capitalizing on emerging demand.
- Highlight versatility: Many consumers look for pieces that offer value by serving multiple purposes. Market outfits that can transition from the office to an evening out. Create content showing how to style a single item in different ways to maximize its appeal.
- Focus on fit and quality: With more options than ever, shoppers are looking for quality that lasts. Emphasize the materials, craftsmanship, and fit of your products. Offering in-store tailoring services or detailed online sizing guides can set you apart and build customer loyalty.
Digital Products: The Unstoppable Rise
The Numbers: The digital products category, which includes items like e-books and games, grew by an impressive 6.45% YoY and 1.22% month-over-month.
This sustained growth confirms that consumers’ appetite for digital goods is not slowing down. The convenience and instant access offered by digital products have become ingrained in modern life. For retailers, this trend signals a critical need to either enter the digital space or expand existing online offerings.
Actionable Advice for Your Business:
- Expand your e-commerce platform: If you primarily sell physical goods, consider adding a digital component. Could you offer an e-book on a related topic, a digital gift card, or an online workshop? For those already in the digital space, ensure your user experience is seamless, from browsing to checkout and download.
- Leverage subscription models: Subscriptions provide a predictable revenue stream and foster long-term customer relationships. This model works well for digital games, streaming content, or curated e-book clubs. Offering a subscription can turn a one-time buyer into a loyal fan.
- Create bundles and promotions: Increase the average order value by bundling digital products together or pairing a digital item with a physical one. For example, a bookstore could bundle a new hardcover with its e-book version at a small discount.
Health & Personal Care: A Priority for Shoppers
The Numbers: The health and personal care sector increased by a healthy 5.98% YoY.
This growth underscores a fundamental shift in consumer priorities. Wellness is no longer a luxury but an essential part of daily life. Shoppers are actively seeking products that support their physical and mental well-being, from skincare and supplements to fitness accessories and relaxation aids.
Actionable Advice for Your Business:
- Enhance the in-store experience: Health and personal care is a tactile category. Allow customers to sample products, feel textures, and smell fragrances. Knowledgeable staff who can offer personalized recommendations and explain the benefits of different ingredients can be your greatest asset.
- Build trust through education: Consumers in this sector are often well-informed and value transparency. Use your blog, social media, and in-store signage to educate them about your products. Explain the science behind your formulations or the sourcing of your ingredients to build credibility.
- Offer curated collections: Help customers navigate your offerings by creating curated kits for specific needs, such as a “morning routine set” or a “stress-relief kit.” This simplifies the shopping process and introduces customers to products they may not have discovered otherwise.
Looking Ahead: Turning Insights into Action
The January 2026 retail data provides a roadmap for strategic growth. The strong performance in clothing, digital products, and health and personal care highlights key areas of consumer interest. By understanding these trends, you can make informed decisions that resonate with your target audience.
Review your current business strategy in light of these sector-specific retail insights. Identify which trends align with your brand and determine how you can adapt your inventory, marketing, and customer experience to capitalize on them.
