Retail sales in the United States during the month of May, including discretionary general merchandise and consumer packaged goods, changed very little year over year, according to market research and analytics company Circana.
In the four weeks ending June 1, overall revenue grew 1% and unit demand remained level with the same month last year, Circana reported. Consumers have adjusted their spending behaviors and price pressures are moderating, so it has become easier for shoppers to make purchases they have been delaying, the market researcher added.
Consumers have been cautiously changing their approach to spending. Circana said a recent consumer survey showed 40% of consumers made a purchase rather than delay spending because of a discount offer. More than eight in 10 consumers said they would buy a product immediately if the price appeared to be a good deal compared to typical pricing.
Amid shift shopping behaviors, consumers 55 and older have consistently demonstrated their overall transactional strength and continue be the only age group that has increased spending on discretionary general merchandise, according to Circana. Average monthly spending for the age bracket gained 4% in the first four months of 2024. The largest retail sales revenue growth occurring in the home improvement, apparel, auto aftermarket and prestige beauty sectors, Circana maintained. Spending by other age groups combined declined 2%. Gen Z and younger Millennials are feeling particularly pressured by the economy, affecting their spending ability, Circana reported.
“The road to retail stability will be a bumpy one, as changes associated with seasonality combined with extreme year-over-year sales comps will bring more spending shifts for marketers to navigate,” said Marshal Cohen, Circana chief retail industry advisor. “The good news is that if the price is right, the consumer will bite.”
