Circana Sees 'Stories of Growth' as Retail Spend Stabilizes

U.S. retail sales in June mimicked May’s performance results, as steady year-over-year sales continued into summer, according to market research firm Circana. 

During the four weeks ending June 29, revenue across the combined view of discretionary general merchandise and consumer packaged goods once again grew 1%, and unit demand remained level with the same time last year. Circana said in a recent statement that 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.

“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 on one area of their budget to free up money to spend on the occasional splurge purchase.” 

Amid the stabilization occurring across discretionary and non-discretionary retail spending, there are stories of growth:

• "Top-performing" products show consumers' willingness to spend. 
• The desire for little luxuries and social media's influence continue to break through budgetary boundaries. 
• Through the first half of 2024, the top sellers ranged in categories, including lip makeup and hair styling to portable beverageware and specialty kitchen appliances. 
• The appeal of innovative products remains paramount. 
• Circana’s “New Product Pacesetters 2024” report reveals consumers are most eager to try new food and beverage products such as carbonated sports and energy drinks and meal solutions.