Consumer spending at US retailers is up 2.5% for the first quarter of the year, according to a new report from the National Retail Federation. 

Chief NRF economist Jack Kleinhenz attributes this increase to an improving job market and rising wages, which are motivating consumers to make their way back to retailers—even while ongoing inflation is increasing the price of services (up 3.4%) and keeping the cost of goods high in the market. 

This assessment is backed by Santa Cruz-based analytics platform Placer.ai, which reports that foot traffic increased at nearly all superstores and wholesale chains across the US during Q1, with the only exceptions being The Home Depot (down 1.1%) and Lowe’s (down 4%). 

In particular, wholesale chains Costco (up 8.9%), Sam’s Club (up 6.1%) and BJ’s Wholesale (up 5.6%) outperformed major superstores in visits as family households opted to stretch their hard-earned dollars further by buying in bulk. Meanwhile, Target and Walmart saw their store visits respectively increase by 3.5% and 3.9%.