We’re Eyeing Two Holdings as We Digest June Retail Sales Report
We see several Pro Portfolio holdings benefit as we look at the later sales data.
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June retail sales in the U.S. rose 0.2% month over month, following an upwardly revised 1% rise in May, matching the market forecast. It marked the smallest increase in five months, but before we jump to any conclusions, let’s remember where gas prices were in May compared to June. While gas prices were still elevated in June compared to June 2025, the amount of retail sales dollars spent in June 2026 was less than June 2025. We see that by the 5.3% sequential drop in June 2026 retail sales for gas stations.
Examining the June retail sales data from a year-over-year perspective, however, is key. Here we see that retail-only sales rose 7.2% in June, a tad slower than the 7.8% figure for May. But consumers spent more in other categories in June compared to May, when we factor in gas sales.
What were those categories? Digital shopping was one place. Those sales benefited from Amazon’s (AMZN) 2026 Prime Day event. Year-over-year, the non-store category rose 14.2% in June, which lifted its second-quarter 2026 figure to 12.6%. Electronics and appliance store sales also rose in June compared to May on a year-over-year basis. We believe the announced price increases for smartphones and related consumer electronics were a likely catalyst for these sales.
Areas that showed slower spending in June compared to May included restaurants and drinking places, grocery stores, building materials, health and personal care, and general merchandise stores.
Taking stock of the report’s findings, we can say the following:
When we look at Costco’s (COST) adjusted comp sales for April, May and June that came in between 7.6% and 8.7%, it’s clear the company won consumer wallet share when we measure it against overall retail-only sales of 6.8% for Q2 2026. That should give COST shares some lift today in what is looking to be another challenging trading session. With gas prices back on the rise, and the likelihood that rebound will continue, we are circling COST shares as well as the ones for TJX (TJX).
At the time of publication, TheStreet Pro Portoflio was long AMZN, COST, and TJX.
