Circana: Consumer spending stays resilient despite softer demand

CHICAGO — U.S. consumers continued to spend in May, though demand patterns showed shoppers becoming more selective and value-conscious, according to new Circana data.

Overall retail spending rose 1.3% year over year in May, while unit demand fell 1.5%. Circana said the split reflects continued consumer resilience amid economic pressures, as shoppers remain engaged yet increasingly intentional about what they buy.

Over the four weeks ended May 30, retail food and beverage sales increased 2.2%, with unit demand essentially flat at 0.1%. Non-edible consumer packaged goods sales rose 2.3%, while unit demand fell 2.1%. Discretionary general merchandise revenue increased 1.2%, even as unit sales declined 4.3%.

“While gas prices have eased slightly, consumers appear to have adjusted to elevated levels, unlocking pent-up demand. The pain at the pump didn’t dampen Memorial Day spending either — the week delivered modest year-over-year growth,” said Marshal Cohen, chief retail industry advisor for Circana. “That being said, consumers may be callused to higher prices, but they’re not numb — they remain highly engaged and intentional in how they spend.”

Circana said discretionary categories are under more pressure, particularly footwear and apparel, where volumes are declining and pricing compression is evident. Private-label brands now account for 49% of apparel sales revenue, indicating continued trade-down behavior among value-seeking shoppers.

At the same time, consumers continue to spend in lifestyle and enjoyment categories. Circana cited gains in entertainment-driven categories such as video games and toys, continued strength in beauty, and practical purchases of automotive products, technology, and small appliances.

“Resilience in consumer spending is not automatic — it must be activated,” Cohen said. “Consumers remain willing to pay a premium for quality, but they are increasingly selective. Coupled with the current digital-first environment, impulse buying is hard to come by. Success lies in the ability to transform purchase moments into compelling, destination-driven experiences that balance both enjoyment and value.”