Market analytics company Circana reported retail performance softened in April as challenging year-over-year comparisons and sustained economic pressures weighed heavily on consumer demand.
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 Circana. The decline was driven in part by calendar-related distortions, with the Easter holiday shifting into March this year, creating an unfavorable comparison for April results, Circana noted. Elevated pricing in key categories, such as eggs, during 2025 also complicated year-over-year performance metrics.
Circana reported year-over-year declines in key retail sectors during the four weeks ending May 2, 2026. Retail food and beverage dollar sales decreased 1.7%, with a 4% drop in unit sales. Non-edible consumer packaged goods (CPG) 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. 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,” said Marshal Cohen, chief retail industry advisor for Circana. “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.”
Challenging comparisons in some areas are further fueling negative results, but softer comps among select consumer segments are helping to prevent steeper declines, Cohen noted. Since early 2025, younger consumers have faced mounting financial pressures, including rising living costs, a moderating job market, increasing credit card debt, and the resumption of student loan repayments. These factors have led to sustained declines in spending among younger consumers — even compared to already soft performance a year ago — creating ripple effects throughout retail, Cohen said.
As a result of the challenges faced by younger consumers, 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, according to Cohen.
While older, more financially stable consumers remain a key source of growth, their spending is not unlimited, Cohen added. The consumer base is becoming increasingly fragmented, he said, and 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.”
