U.S. retail sales revenue, including both discretionary general merchandise and consumer packaged goods, increased one percent in June compared to last year, according to data from market research firm Circana. Although spending is up, unit sales fell three percent.
Food and beverage CPG spending grew five percent over last year with a two percent unit sales decline and non-edible CPG sales revenue grew two percent with a five percent decline in unit sales. The findings also identified discretionary general merchandise declines of four percent in dollar sales and nine percent in unit sales compared to last June.
“A new sales performance baseline has been established in discretionary general merchandise with sustained decline levels through the second quarter of the year, and demand movement has started to develop in CPG,” said Marshal Cohen, chief retail industry advisor for Circana, in a statement.
Discretionary general merchandise spending declines continued into the first week of July with another three percent year-over-year decline in sales revenue and a seven percent drop in unit sales. According to Circana, these shifts relate to the ongoing trend toward flattening retail peaks that began in 2022.
“Economic challenges have reinforced behavioral shifts that emerged from the pandemic, including consumers becoming more thoughtful about how and what they spend their money on, which ultimately affects when the spending takes place,” said Cohen, in a statement. “Retailers and manufacturers need to recognize the shifts that are happening to the retail landscape and plan accordingly, particularly as we approach the major retail holidays, like the back-to-school season, Black Friday, and Christmas.”
This year, retail sales during the traditional selling peaks of Valentine’s Day, Easter, Mother’s Day, and Father’s Day have failed to reach expected levels.
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