Las Vegas is facing challenges in consumer spending, with reduced tourist numbers, ongoing inflation, and economic uncertainties impacting various retail sectors.
Recent statistics from the Nevada Department of Taxation reveal that Clark County has seen a drop in sales across multiple categories including dining, auto sales, clothing, and home goods between July 2024 and May 2025 compared to the previous year.
This spending decline affects both residents and visitors, though certain sectors exhibit closer ties to local consumer behavior. The food service and bar industry netted nearly $11.7 billion during this timeframe, marking a 1.6 percent decrease equivalent to about $191.5 million in lost earnings. Retailers in apparel, footwear, and jewelry reported total sales of $4.05 billion, down by $140 million.
Automobile and parts dealers, which depend heavily on the local market, saw figures drop to around $6.05 billion, resulting in a $191.1 million downturn. Sales in furniture, electronics, and appliance stores also suffered, bringing in $1.7 billion, a drop of $28.5 million from the previous year.
Bryan Wachter, president of the Retail Association of Nevada, credits the slowdown in consumer engagement to a diminishing customer base caused by the decline in tourist visits and inflationary pressures on family budgets.
“The decreasing number of consumers in the Las Vegas region due to falling visitor traffic could potentially result in reductions to local employees’ hours and wages,” he stated in a report by the Las Vegas Review-Journal. He explained that rising costs for essential items frequently prompt consumers to postpone or limit their discretionary spending. “You start negotiating priorities,” Wachter added.
Despite the downturn, some retail sectors thrived. General merchandise stores, including major retailers such as Costco and Target, experienced a significant sales increase, totaling $8.7 billion over the same 11-month duration, reflecting a rise of over $487 million.
Clark County, with a population of about 2.3 million, heavily relies on a consistent influx of tourists to support its economic viability. In the first half of 2025, Las Vegas attracted approximately 19.5 million visitors, indicating a 7.3 percent drop from the same period in 2024, according to the Las Vegas Convention and Visitors Authority. Visitor numbers in June fell 11.3 percent year-over-year.
The economic difficulties are mirrored in the local job market. As of June, Las Vegas recorded an unemployment rate of 5.8 percent, ranking third among U.S. metropolitan areas with populations exceeding one million, based on federal employment data.
Las Vegas’ exposure to economic downturns is a recurring theme. During the Great Recession, a collapse in the real estate market left the area with soaring foreclosure rates and an unemployment rate that peaked at 13.8 percent, significantly above the national peak of 10 percent.
More recently, in April 2020, the first full month of shutdowns due to COVID-19, Las Vegas experienced a severe rise in unemployment, reaching 34 percent compared to the national figure of 14.8 percent for that month.
John Restrepo, a consultant and founder of RCG Economics, pointed out that the city’s reliance on discretionary spending from tourists makes it particularly vulnerable to economic fluctuations. “The eventual outcome is uncertain,” he commented, “but current trends are not promising.”
Restrepo also highlighted global trade instability and fluctuations in financial markets as key elements contributing to waning confidence among consumers and businesses.