US retail sales rise amid declining unit sales in May 2023: Report

High-volume categories like apparel suffered a decline in sales, although certain sectors witnessed boosted spending. The dip in discretionary general merchandise spending is attributable to rising prices and declining consumer sentiment, yet the expected shift in shopping locations amid economic uncertainty remains unmanifested.

Despite these shifts, e-commerce was the standout performer, gaining the largest share of sales revenue so far this year with a rise of more than 2 share points. Department stores also managed to maintain their market share, while value-oriented options such as mass merchants, warehouse clubs, and off-price retailers did not attract the expected levels of consumer attention, as per Circana.

Changes are emerging in how consumers are making their CPG purchases. With overall spending remaining high due to inflation, shopping behaviours are shifting. Shoppers are buying fewer items per trip compared to last year, and a shift towards value-focused retail options has begun. Industry experts see these changes in CPG shopping behaviours as early indicators of broader transformations on the horizon for the entire retail industry.

“Consumers are engaged and spending, just not at full throttle,” said Marshal Cohen, chief retail industry advisor for Circana. “Directional spending shifts, coupled with unemployment elevation, and recent air quality concerns in the US could jolt a significant shift in consumer behaviour. But, for the time being, consumers continue seek little luxuries and are willing to pay a premium for most of their purchases.”

Fibre2Fashion News Desk (DP)