Circana: Retail spending, unit demand fall in April
Challenging year-over-year comparisons and sustained economic pressures weighed heavily on consumer demand in April.
Overall retail spending declined 1.6% compared to April 2025, while unit demand fell 4.7%, reflecting a cautious consumer environment across multiple sectors, according to a report from Circana. The decline was driven in part by calendar-related shifts as the Easter holiday fell in March this year, creating an unfavorable comparison for April results.
Additionally, elevated pricing in key categories last year — particularly eggs during the height of avian flu disruptions — further complicated year-over-year performance metrics.
For the four weeks ending May 2. retail food and beverage dollar sales decreased 1.7%, with a 4% drop in unit sales. Non-edible consumer packaged goods revenue dipped 0.7%, while unit demand was down 5.8%. Discretionary general merchandise sales revenue fell 2.1%, with a 10.9% drop in units.
"Current retail results are clouded,” said Marshal Cohen, chief retail industry advisor for Circana. “April may have been short on growth, but it is important to note that year-to-date retail results reflect minor growth, underscoring the importance of looking past a singular view. Inconsistent year-over-year comparisons combined with mounting macroeconomic pressures on household budgets from rising prices across retail, and now at the pumps, are creating an incomplete top-line picture of retail sales — particularly in discretionary spending.”
A combination of financial challenges have led to sustained declines in spending among younger consumers, where notable lifestyle shifts are emerging. Increased focus on cooking and entertaining at home, and growth in do-it-yourself solutions, including auto maintenance, echo behavior patterns seen during the pandemic, signaling a longer-term reset in how younger households allocate spending, the report said.
While older, more financially stable consumers remain a key source of growth, their spending is not unlimited. Also, different demographic groups are reacting to economic conditions in distinct ways, resulting in varied spending patterns and priorities.
“There is no longer a one-size-fits-all consumer,” added Cohen. “Retailers must tailor their approach across multiple dimensions to effectively meet evolving needs of a variety of consumer groups. As the impact of softer year-ago comparisons fades, retail success will depend on the ability to adapt quickly to shifting behaviors and deliver value through diversified offerings and targeted engagement strategies.”
