In a Circana study, June retail sales revenues in the United States, combining discretionary general merchandise and consumer packaged goods, increased by 1% versus the 2022 month as unit sales declined by 3%.
The results included declines of 4% in dollar sales and 9% in unit sales of discretionary general merchandise versus the month a year earlier. Food and beverage CPG spending grew 5% versus last year but declined 2% in unit terms. Non-edible CPG sales revenue grew 2% even as unit sales declined 5%, according to Circana, the market research company resulting from the merger of The NPD Group and IRI.
“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, Circana chief retail industry advisor.
Discretionary general merchandise spending declines continued into July’s first week with another 3% year-over-year decline in sales revenue and a 7% unit sales decline. The spending and demand shifts relate to the ongoing trend toward flattening retail peaks that began in 2022. Year-to-date, retail sales during the traditional selling peaks of Valentine’s Day, Easter, Mother’s Day and Father’s Day have fallen short of expected levels. Instances of similar shifts occurred in CPG spending and demand, Circana stated, but it remains to be seen if the same trends are forming amid enduring price elevation.
“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,” Cohen said, “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.”
