Beneath stable spending, cracks show in discretionary categories

Chicago – Despite steady overall consumer spending in May, demand softened for general merchandise goods, according to analytics data from Circana.

Overall retail spending in May rose 1.3% year over year, while unit demand declined 1.5% – a pattern Circana suggested points to a more selective and value-conscious shopper. The market research firm described consumer behavior as “increasingly erratic,” shaped in part by the delayed impact of elevated costs.

Breakout patterns in the four weeks ending May 30 included:

Discretionary general merchandise sales: 1.2% growth in revenue, alongside a sharper 4.3% decline in unit sales, “reflecting heightened sensitivity to price and necessity.”

Retail food and beverage sales: 2.2% growth in revenue, with unit demand essentially flat (+0.1%).

Non-edible consumer packaged goods: 2.3% growth in revenue, with a 2.1% drop in unit sales.

A handful of categories were standouts in May:

• 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 — reflected the prioritization of essential needs.

“Consumers may be callused to higher prices, but they’re not numb — they remain highly engaged and intentional in how they spend,” said Marshal Cohen, chief retail industry advisor for Circana. “Resilience in consumer spending is not automatic — it must be activated.”