Circana: May Retail Sales Showcase Consumers Making Trade-offs Amid Uncertainty

According to Circana, LLC, overall U.S. retail sales revenue was up 1% during the four weeks of May compared to the same time in 2024, while unit demand fell 1%. As costs caused an increase in spending on food despite unchanged consumption, discretionary spending took a back seat for most consumers as they prioritized purchases.

“Consumers are prioritizing their spending to a degree not seen since the pandemic, and consumer sensitivity to price and priority will only elevate as market pressures evolve,” said Marshal Cohen, chief retail industry advisor for Circana. “Today’s prioritization behavior is not consistent across all industries, or even consumer segments, and is likely to change in the weeks and months ahead as we navigate through the early stages of price increases and tariff-impacted products appear in stores.”

Prioritization variability is particularly evident in the comparison of adult-only households and households with children. While consumers who have children are incurring the same elevated prices on food, they are also continuing to spend more on discretionary items — kids are an enduring priority. Households with children represent less overall discretionary spending than adult-only households, but they are still delivering growth and presenting an opportunity at retail, for now. As cost pressures mount, spending growth among households with kids is likely to diminish.

For the combined four weeks ending May 31, 2025, retail food and beverage sales revenue was up 3%, and unit sales were flat. Non-edible CPG dollars rose 1%, and unit sales declined 2%. At the same time, there was a 3% decline in discretionary general merchandise retail dollar sales, and unit demand was 4% lower than the same period a year ago.

In the final week of May, apparel led the pullback in general merchandise spending, while prestige beauty sales rebounded into growth mode and reclaimed the top spot in general merchandise. The earlier pull-forward purchase activity in consumer technology that was fueled by concerns over potential tariff impacts dropped back as tariffs became more of a reality.

“Consumer behavior is becoming predictive, particularly as it relates to discretionary purchases,” said Cohen. “Minimal changes to food spending behavior put more pressure on general merchandise to absorb the changes made by consumers, making it critical for marketers to not only observe and react to a shift in one market segment but also view those shifts as a preview of what will come in other segments.”

About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data technology platform is powered by an expansive, high-quality data set and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy.

See also: These Are The Factors Disrupting Normal Consumer Behavior, Reports Circana