Consumer Behavior

General merchandise sales dip in a year

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February 20, 2023

Discretionary U.S. general merchandise retail sales revenue in January of this year landed 3% lower than in 2022 and unit sales were down 5% in the same time frame.

The data point comes from The NPD Group, with recently merged with Information Resources Inc.

Even lower sales prices on general merchandise were not enough to offset higher food costs, according to a press release on the data.

"Rising prices have been a persistent component of the recent evolution of retail trends and 2023 is starting off with more of the same," Marshal Cohen, chief retail industry advisor for NPD, said in the release. "Higher food prices have impeded normal general merchandise behavior, from both a consumer and retailer perspective."

Escalating prices across all of retail have led to a general decline in consumer purchasing, which has resulted in varying levels of promotional activity to help manage inventories, according to the release.

"Consumers have conditioned themselves to buy what they need when they need it, rather than when they see value. This behavioral shift has made promotions less impactful than in years past," Cohen said in the release. "Without new product to inspire purchasing, and a more complete understanding of consumer spending patterns, general merchandise sales will continue to be negatively affected by the consumer's response to elevated prices."