Retail Sales Hold Steady Year Over Year
CHICAGO — The steadying of unit sales, flattening average selling price comparisons, increased value options and promotional engagement are signals of continued movement toward consumer spending stabilization, according to recent research from Circana.
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U.S. retail sales delivered a repeat performance of May results in June. During the four weeks ending June 29, revenue across the combined view of discretionary general merchandise and consumer packaged goods (CPG) once again grew 1%, and unit demand remained level with the same time last year.
"A growing group of consumers are living with a budget and assessing the need with an eye on value," said Marshal Cohen, chief retail industry advisor for Circana. "They are also figuring out how to save money without giving up what they really want, cutting back in one area of their budget to free up money to spend on the occasional splurge purchase."
Amid the stabilization occurring across discretionary and nondiscretionary retail spending, there are stories of growth. Circana found the desire for little luxuries and social media influence have continued to break through budgetary boundaries, with hot sellers in the first half of 2024 ranging from categories like lip makeup and hair styling to portable beverageware and specialty kitchen appliances.
Simultaneously, Circana found consumers will often cut back in another area of spending to help fuel needs-based spending such as auto maintenance even as they continue to indulge in splurge purchases.
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The appeal of innovative products also remains paramount. Circana's New Product Pacesetters 2024 report found consumers are still eager to try new food and beverage products like carbonated sports and energy drinks and meal solutions.
"Consumers simply need to be given a reason to buy — a reason that resonates enough to warrant allocating part of their limited budget," said Cohen. "Growth in the current retail climate depends on not only taking advantage of spontaneous event-based spending, but also identifying and activating on the reasons that will stimulate spending and create new sales peaks."
An advisor on the complexity of consumer behavior, Chicago-based Circana uses technology, advanced analytics, cross-industry data and deep expertise to provide clarity that helps almost 7,000 of the world's leading brands and retailers take action and unlock business growth.