Report: March Retail Revenue, Unit Sales Drop

Discretionary U.S. general merchandise sales in terms of revenue and unit sales were down in March as consumers continue to pull back on discretionary and essential purchases, according to new data from Circana.

Merchandise retail sales revenue was down 7% compared to March of 2022 with unit sales down 8%. The drop in both remained consistent throughout the month, spanning units and dollars for the first time in 2023. 

“In order to create some spending elevation, there needs to be new products and new ways of thinking to reflect the changed consumer behavior and retail landscape,” said Marshal Cohen, chief retail industry advisor for Circana. 

Across discretionary general merchandise and consumer packaged goods (CPG), the trends in consumer spending and new product deficits in the marketplace have directional similarities that are intensified by elevated prices, Cohen said. Compounding these consumer distractions are news stories about inflation and bank insolvencies that continue to raise consumer concerns about the economy, which can adversely affect shopper sentiment and spending.

“One of the biggest retail casualties of the pandemic has been the availability of new and refreshed products for consumers, and now economic uncertainty is putting even more pressure on the consumer’s interest in spending,” he said. “Manufacturers and retailers need to broadcast their value and prove their worth to the consumer now, in order to avoid a downward spiral later.”