US retail sales have seen a significant decline in January, dropping 0.9%, marking the largest decrease in nearly two years. This downturn comes after a bustling holiday shopping season, as consumers reportedly pulled back on spending. Factors contributing to this slump include harsh winter weather, wildfires, and inflation concerns influencing consumer confidence. Analysts suggest that these conditions may also impact forecasts for Federal Reserve rate cuts. Despite the overall drop, online sales have remained strong, indicating a shift in consumer purchasing habits during this challenging period.