SAN GABRIEL VALLEY — Retail Spending Pullback Challenges local businesses as consumers become more selective about where they spend. U.S. retail and food service sales declined 0.6% in July after rising 0.2% in June, according to the U.S. Census Bureau.
July sales totaled an estimated $763.6 billion after seasonal adjustments. Despite the monthly decline, spending remained 5% above July 2025 levels. Sales from May through July were 6.3% higher than the same period last year.
For businesses in El Monte, South El Monte, Baldwin Park, Rosemead and Irwindale, the figures suggest consumers remain active but may be more cautious.
Retail Spending Pullback Challenges Local Merchants
The July decline reached several categories that can reflect discretionary spending.
Motor vehicle and parts dealer sales fell 1.8% from June. Nonstore retailers, a category that includes online sellers, recorded a 2.2% decline. Electronics and appliance store sales slipped 0.5%.
Other categories performed better. Clothing and accessories stores posted a 1.9% increase. Health and personal care stores rose 0.7%, while food services and drinking places increased 0.5%.
The mixed results suggest consumers did not reduce spending uniformly. Instead, households shifted where they spent their money during the month.
The Census Bureau also reported sales excluding gasoline stations fell 0.6% from June. That indicates the overall decline cannot be attributed solely to changing gasoline spending.
Value Matters As Fall Approaches
For independent businesses, cautious consumers can increase competition for household dollars.
Families preparing for back-to-school expenses may prioritize clothing, supplies and other necessities. Optional purchases can face more scrutiny when households have limited money remaining after paying essential bills.
Local businesses can respond through competitive pricing, promotions, service and convenience. Independent merchants may also benefit from understanding customer preferences within their neighborhoods.
The national figures do not measure spending specifically in the San Gabriel Valley. Local conditions can differ based on employment, income, business mix and other factors.
Still, the report offers businesses a timely measure of broader consumer behavior.
Consumers Remain Active Despite Decline
Retail Spending Pullback Challenges businesses, but July’s report does not indicate that consumers have stopped shopping.
Food service and drinking place sales were 5% above July 2025 levels. Nonstore retailer sales remained 7.7% higher despite their monthly decline. Clothing store sales were also 5% above their year-earlier level.
The Census Bureau cautions that its advance estimates come from a sample and can be revised. The agency surveys about 4,800 employer firms to produce its early monthly estimates.
Readers can follow future retail reports through the U.S. Census Bureau’s Monthly Retail Trade program. The next advance sales report, covering August, is scheduled for Sept. 16.
For San Gabriel Valley businesses, July’s decline reinforces the importance of competing for consumers who are still spending but may be weighing each purchase more carefully.
