July Retail Sales Reveal a Summer Vacation From Discretionary Spending, Reports Circana
August 15 2024 - 4:55PM
CHICAGO, August 15, 2024 — Total U.S. retail sales across the
combined view of discretionary general merchandise and consumer
packaged goods (CPG) continued on the path toward a state of
equilibrium in July. During the four weeks ending August 3, 2024,
overall sales revenue remained level with the same four weeks last
year, and unit demand declined 1%. While both food and beverage and
non-edible CPG sales revenue increased 1%, with generally flat
year-over-year unit performance, discretionary sales remained
challenged, with a 3% decline in dollars and a 2% decline in units.
Despite major retail promotional events, consumers maintained their
steady spending of the past several months, according to Circana™,
a leading advisor on the complexity of consumer
behavior.
“This month’s sales results demonstrate just how adept consumers
have gotten at adapting their spending behavior to stick to a
budget, including taking a break in some areas,” said Marshal
Cohen, chief retail industry advisor for Circana. “This apparent
vacation from spending is having an impact across discretionary
categories. The long-standing strong performance in beauty and the
auto aftermarket is starting to level off; back-to-school shopping
has yet to show up in a significant way, and challenging results
for apparel, footwear and accessories demonstrate that consumers
are holding off on updating their wardrobes.”
There is a growing focus on finding value in new channels, as
evident in the retail food and beverage revenue gains that clubs
and dollar stores have captured in the first half of this year.
Similar club store gains in non-edible CPG indicate related
behavior there as well. In discretionary general merchandise, the
shifts are more about what consumers are buying than where —
products are prioritized based on need, and brand loyalty is tested
by financial concerns and competitive product offerings across all
channels.
“Consumers are shifting their dollars, not spending more, so
marketers need to find ways to be the beneficiaries of these
changes or risk being the victims,” added Cohen. “As fall weather
approaches and looming distractions around summer activities and
the election evolve, it will be important to watch how consumer
spending behavior changes — because it will change.”
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About Circana Circana is a leading advisor on the
complexity of consumer behavior. Through superior technology,
advanced analytics, cross-industry data and deep expertise, we
provide clarity that helps almost 7,000 of the world’s leading
brands and retailers take action and unlock business growth. We
understand more about the complete consumer, the complete store and
the complete wallet, so our clients can go beyond the data to apply
insights, ignite innovation, meet consumer demand and outpace the
competition. Learn more at www.circana.com.
- Top Channel Dollar Share Gainers by Retail Segment
Janine Marshall
Circana
516-625-2356
janine.marshall@circana.com