U.S. Retail and Food Services Sales Rise 4.3% Through May as Credit and Wealth Sustain Spending
Updated
Updated · WWD · Jul 14
U.S. Retail and Food Services Sales Rise 4.3% Through May as Credit and Wealth Sustain Spending
3 articles · Updated · WWD · Jul 14
Summary
Retail and food services sales rose 4.3% through May, pointing to modest real growth even as consumer confidence remains weak and spending patterns keep shifting.
34.2% higher weekly earnings and 15.8% higher disposable income since 2019 have supported demand, but much of the resilience is also coming from wealth, reduced savings and easier access to credit.
45.5% higher gasoline prices, 35.5% higher food prices and a 77.1% jump in interest payments are squeezing lower-income households, while revolving consumer credit has climbed 26.1% and delinquencies have increased.
91.2 consumer confidence in June—up 0.6 point but far below 121.5 seven years ago—underscores the strain, pushing retailers to chase higher-income shoppers with premium products and better in-store experiences.
Ralph Lauren, Coach and Levi’s are among brands leaning into that strategy, betting selective premiumization can capture the consumers still able to spend as broader household finances come under pressure.