2024 concluded with 2% growth in both holiday discretionary spending and total retail spending for the year
CHICAGO, Jan. 27, 2025 (GLOBE NEWSWIRE) — CHICAGO, January 27, 2025 — The U.S. consumer showed up for holiday shopping in a big way in the final weeks of 2024, but returned to their pre-holiday spending behavior once the festivities ended and new distractions emerged. In the combined five weeks ending January 4, 2025, there was a 9% increase in discretionary retail dollar sales and 5% growth in unit demand compared to the same period a year ago, according to Circana™, a leading advisor on the complexity of consumer behavior. This December growth was partly a result of the shift of Cyber Week to December from the November timing in 2023, just one example of shifts in the calendar impacting year-over-year performance comparisons during the season.
The final results of the core U.S. holiday shopping season, beginning with Black Friday and carrying through the end of the year, was 2% dollar growth and a 1% increase in unit sales for discretionary general merchandise. Total retail sales for the year, including discretionary general merchandise, retail food and beverage, and non-edible consumer packaged goods (CPG), also grew 2% in dollars and 1% in units.
“Economic concerns kept consumers focused on needs, and the U.S. presidential election distracted them from early season spending. Then, calendar shifts created an abbreviated shopping period between Thanksgiving and Christmas that renewed a sense of urgency that spilled into the additional last-minute shopping days after Super Saturday,” said Marshal Cohen, chief retail industry advisor for Circana. “Ultimately, the resiliency of the consumer remained strong and resulted in the moderate growth anticipated at the season’s start.”
Discretionary spending quickly shifted back to the established baseline performance in January as consumers resumed their focus on needs and value. During the weeks ending January 11 and 18, discretionary spending was down 4% compared to the prior year. Major environmental events impacting the country, from a widespread winter storm and extreme cold to the Southern California wildfires, are also impacting retail. Unit demand was down 5% and 8%, respectively, during the first two full weeks of the year. Retail spending on food and CPG products remains elevated over last year with unchanged demand.
“Consumers are taking a post-holiday spending respite, still facing higher prices on non-discretionary items, while also dealing with a new set of distractions,” added Cohen. “The consumer resiliency demonstrated by Holiday 2024 and the year’s overall retail results are a good sign for retail, but marketers need to be prepared for inevitable distractions that will impact the types of products purchased and the timing of spending as consumers continue to prioritize purchases around immediate need.”
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About Circana
Circana is a leading advisor on the complexity of consumer behavior. Through superior technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet, so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at www.circana.com.
CONTACT: Janine Marshall Circana 516-625-2356 janine.marshall@circana.com
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