The U.S. retail sales inched up 0.6% sequentially in August 2025, the same as an upwardly revised 0.6% rise in July and beating market expectations of a 0.2% gain, as quoted on Tradingeconomics. The back-to-school season shopping probably boosted sales in the month.
Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, gained 0.7% following a 0.5% uptick and surpassed expectations of 0.4%, the above-mentioned Tradingeconomics article reported.
Below we highlight a few areas and the related ETFs and stocks that may benefit handsomely from the retail sales.
Winning Areas
Online Retailers
Nonstore retailers (e.g., online sales) saw a 2% sequential increase and an 10.1% yearly gain (per government data).
ProShares Online Retail ETF ONLN – The ProShares Online Retail Index is a specialized retail index that tracks retailers principally selling online or through other non-store channels. The fund charges 58 bps in fees.
Amazon.com AMZN – Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. The stock has a Zacks Rank #3 (Hold).
Clothing Stores
Sales gained 1% sequentially and 8.3% year over year in August 2025.
SPDR S&P Retail ETF XRT – The fund gives exposure to U.S. retail stocks. Apparel retail takes about 21% of the fund. The fund charges 35 bps in fees.
Genesco GCO – The Zacks Rank #1 (Strong Buy) company is a specialty retail and branded company, which sells footwear and accessories in retail stores throughout the United States, Canada, the United Kingdom and the Republic of Ireland.
Sporting Goods, Hobby, Musical Instrument, & Books
The segment saw a 0.8% sequential gain in sales. The segment’s sales were 4.7% higher year over year.
As far as the ETF route is concerned, broad-based retail ETFs like Consumer Discretionary Select Sector SPDR ETF XLY and VanEck Retail ETF RTH should fit the bill.
DICK'S Sporting Goods DKS – The company operates as a sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc. The stock has a Zacks Rank #3.
Food Services & Drinking Places
Sales at food services and drinking places gained 0.7% sequentially in August and rose 6.5% year over year.
AdvisorShares Restaurant ETF EATZ – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The fund charges 99 bps in fees.
BJ's Restaurants BJRI – BJ’s Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. The stock has a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
