Retail sales grew in March after two straight months of declines, but gains remained moderate as consumers continued to be concerned by rising tariffs, according to the CNBC/NRF Retail Monitor, released this week by the National Retail Federation.

“Retail sales increased in March but only moderately, and the spending came before the president’s ‘Liberation Day’ tariff announcement,” NRF President and CEO Matthew Shay said. “The pullback we’ve seen the past few months comes despite strong economic fundamentals. A major factor appears to be driven by the uncertainty caused by tariffs. March’s increase is partly the result of stocking up to get ahead of tariffs. With the economic outlook unclear and the situation fluid, consumer sentiment is weakening, and many consumers are shifting disposable income into savings.”

The report found that total retail sales, excluding automobiles and gasoline, were up 0.6% seasonally adjusted month over month and up 4.75% unadjusted year over year in March, according to the Retail Monitor. That compared with February’s decrease of 0.22% month over month and an increase of 3.38% year over year in February.

Placer.ai reported that overall dining visits declined in Q1, but some budget-friendly options did experience visit growth. Visits to coffee chains were up 1.7% in Q1 2025, and fast casual and QSR concepts saw a minor traffic drop of 1.4% year over year. Meanwhile, traffic to full-service restaurants declined 3.0% year over year.

“These visitation patterns suggest that consumers are still willing to spend on budget-friendly treats, such as a specialty coffee or pastry, and—to a lesser extent—slightly pricier fast-food or fast-casual entrees. But many may be cutting back on meals at sit-down restaurants and redirecting their spending towards more affordable indulgences,” wrote Placer.ai.

In a recent Numerator poll, consumers shared that they are increasingly concerned over how tariffs will impact them financially. Eighty-five percent of consumers express concern about how tariffs will affect their personal finances and shopping behaviors, up four points from February, according to Numerator.

A recent NACS survey revealed that consumers are not feeling great about their finances compared to a year ago. Concerns about finances echo findings from NACS’ December 2024 consumer survey, when 61% of consumers said that they worried about their finances and 55% were pessimistic about the economy. (Check out more insights in “The State of Eating in America” in the February 2025 issue of NACS Magazine.)