Circana: Retail spending rises, unit demand dips in May
Retail spending rose in May despite consumers being more selective and value conscious amid rising prices and fuel costs.
Circana’s latest data for the four weeks ending May 30, 2026 found that retail spending rose 1.3% year over year while unit demand declined 1.5%, showing that consumers are being more discerning about what they buy. In April, overall retail spending declined 1.6% year over year, while unit demand fell 4.7%.
Circana’s data noted that performance varied across retail sectors. Retail food and beverage sales increased 2.2%, with unit demand essentially flat (0.1%), indicating stable consumption despite early signs of moderation. Non-edible consumer packaged goods posted a 2.3% increase in dollar sales, while unit demand fell 2.1% year over year.
“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 calloused to higher prices, but they’re not numb – they remain highly engaged and intentional in how they spend.”
Discretionary general merchandise saw 1.2% growth in revenue, alongside a 4.3% decline in unit sales, reflecting heightened sensitivity to price and necessity. Footwear and apparel also saw declining volumes and pricing compression in May. Circana added that private label brands now account for 49% of apparel sales revenue, signaling value-driven trade-down behavior.
Circana noted that categories aligned with “lifestyle and enjoyment” are still seeing some gains:
- Entertainment-driven segments, such as video games and toys, recorded notable gains.
- Beauty products remain a steady driver of discretionary spending.
- Practical purchases – including automotive products, technology, and small appliances – reflect ongoing prioritization of essential needs.
[READ MORE: NRF: Retail sales grow again in May]
“Resilience in consumer spending is not automatic – it must be activated,” added Cohen. “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.”
