Retail sales strengthened in October, posting both monthly and annual gains as the holiday shopping period approaches, according to the CNBC/NRF Retail Monitor powered by Affinity Solutions and released by the National Retail Federation (NRF).

The report showed total retail sales—excluding auto dealers and gas stations—increased 0.6% on a seasonally adjusted basis from September and rose 5% year over year. In September, sales had declined 0.66% month over month but were up 5.42% from the previous year.

Core retail sales, which also exclude restaurants in addition to auto dealers and gas stations, followed a similar trend. Core spending increased 0.6% month over month and 4.89% year over year. In comparison, September core sales fell 0.49% from August but grew 5.72% annually.

For the first 10 months of 2025, total retail sales were up 5.11% over the same period in 2024, while core sales increased 5.28%.

The October results were released as NRF reiterated its forecast that 2025 holiday sales will grow between 3.7% and 4.2% from 2024, reaching just over $1 trillion.

Unlike survey-based federal retail data, the Retail Monitor uses anonymized credit and debit card transaction information from Affinity Solutions and is not subject to routine revisions.

Year over year, sales increased in seven of nine retail categories in October, led by digital products, clothing, and sporting goods. Month-over-month gains were recorded, seasonally adjusted, in the same number of categories. Here are specifics from key categories seasonally adjusted from last month and unadjusted compared to last year:

• Digital products (such as electronic books and games) were up 2.02% from last month and up 22.39% compared to last year.

• Clothing and accessories stores were up 1.42% from last month and up 7.89% compared to last year.

• Sporting goods, hobby, music and book stores were up 0.09% from last month and up 7.19% compared to last year.

• General merchandise stores were up 0.58% from last month and up 6.99% compared to last year.

• Electronics and appliance stores were up 0.13% from last month and up 6.58% compared to last year.

• Grocery and beverage stores were up 0.59% from last month and up 4.08% compared to last year.

• Health and personal care stores were up 0.58% from last month and up 1.9% compared to last year.

• Furniture and home furnishings stores were down 0.08% from last month and down 1.7% compared to last year.

• Building and garden supply stores were down 0.81% from last month and down 8.52% compared to last year.