April Retail Sales Wavered

U.S. retail sales revenue in April declined 1 percent compared to the same month last year according to data insights firm Circana. During the four weeks ending April 27, year-over-year unit demand fell 2 percent across retail segments.

While overall consumer spending levels at retail are holding relatively steady, what consumers are spending on is changing, according to Circana.

“Retail sales have settled into a pattern of consistency in overall consumer spending where year-over-year comparisons are challenged to realize growth, or parity, in some cases, even at the traditional retail selling peaks,” said Marshal Cohen, chief retail industry advisor at Circana, in a statement. “As consumers stabilize their spending, the competition for their dollars heats up. Marketers need to leap at the brief windows of opportunity created by seasonal and socially inspired consumer reprioritization that lie below the surface.”

In the week ending May 4, discretionary general merchandise retail sales revenue fell 4 percent from the same week last year, and unit sales declined 1 percent. Price elevation has created growing competition between discretionary and non-discretionary categories as consumers have needed to make financial trade-offs, according to Circana.

“The current trend of consumer malaise related to purchases is one that manufacturers and retailers need to set their sights on resetting in order to return to growth,” said Cohen. “In the meantime, new opportunities to engage the consumer are making appearances, but retail must venture beyond traditional thinking to meet the consumer where they are in those moments, reengaging them before the growing field of competition does.”