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Sales at grocery stores edge up again in June

Total U.S. retail sales back on growth track after prior-month dip, Census Bureau reports

Russell Redman

July 15, 2022

4 Min Read
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In June, grocery store sales rose 0.6% month to month and 8.3% year over year to $70.33 billion (seasonally adjusted), the U.S. Census Bureau said.Smart & Final

U.S. retail sales in June returned to growth after a prior-month dip, though grocery stores generated a smaller increase.

June U.S. retail and foodservice sales totaled $680.59 billion (seasonally adjusted), up by 1% from May and by 8.4% from June 2021, the U.S. Census Bureau reported in advance estimates released Friday. Retail trade sales — excluding motor vehicles and parts stores, gas and repair stations — rose 1% sequentially to $594.5 billion in June and were up 7.7% from a year earlier.

In May, overall retail sales were down 0.3% month to month but up 8.1% year over year. Retail trade sales, similarly, fell 0.4% sequentially in May yet rose 6.9% from a year before.

Grocery stores saw June sales edge up 0.6% month to month and 8.3% year over year to $70.33 billion (seasonally adjusted), the Census Bureau said. Sales at all food and beverage stores rose 0.4% sequentially and 7.1% year over year to $78.33 billion (seasonally adjusted) for the month.

For May, grocery store sales advanced 1.2% from April and were up 8.7% from a year earlier, while food and beverage store sales gained 1.2% sequentially and 7.9% year over year.

Year-to-date through June 2022, food and beverage store sales were up 7.6% year over year to $455.23 billion (unadjusted), including an 8.6% increase to $409.53 billion at grocery stores over the six-month period.

Related:June food-at-home prices jump over 12%

June 2022 US retail sales chart_US Census Bureau_7-15-22.png

“Today’s retail sales numbers reveal how consumers are continuing to absorb higher prices in non-discretionary categories like gas and deferring purchases in categories like appliances,” stated Claire Tassin, retail and e-commerce analyst at data intelligence firm Morning Consult. “Declines in apparel and department store spending indicate that consumers are tightening their belts in some areas as they manage through this difficult period.”

In its retail sales report on Friday, the National Retail Federation (NRF) noted that shoppers kept up spending in June amid elevated inflation that hiked prices across the board.

“June retail sales data shows that consumers remain on solid footing despite rising prices and an active Fed raising interest rates to combat it,” NRF President and CEO Matthew Shay said said in a statement. “Inflation has consumers modifying their spending behavior and prioritizing essentials like food, energy and back-to-school items. Unfortunately, modified consumer behavior won’t be sufficient to offset persistent price increases. Other policy measures like removing China tariffs, enacting smart immigration reforms and investing in supply chain resiliency are needed to lower costs for American families and put much-needed dollars back into their pockets.”

Related:U.S. grocery sales jump 14% in June

On Wednesday, the U.S. Bureau of Labor Statistics (BLS) reported that the June Consumer Price Index (CPI) rose 1.3% month to month (seasonally adjusted) and 9.1% year over year, the latter marking biggest 12-month increase since November 1981. June’s food-at-home index climbed even higher, up 12.2% year over year and representing the largest gain since the 12 months through April 1979, according to BLS.

The month-over-month rise in the food-at-home index remained sharp in 2022, up 1% in June after upticks of 1.4% in May, 0.9% in April, 1.5% in March, 1.4% in February and 1% in January.

“Overall numbers show consumer spending remains robust,” Naveen Jaggi, president of retail advisory services at commercial real estate firm Jones Lang LaSalle (JLL), commented on the Census Bureau’s June retail sales report. “However, as inflation persists, consumers are paying more for essentials. Retail foot traffic largely declined in June, with the exception of experience-related tenants like theaters, fitness and ‘eatertainment’ attractions, so it’s clear retail sales are rising nominally because of higher prices.”

Washington-based NRF’s estimate — which excludes automobile dealers, gas stations and restaurants to focus on core retail — had June retail sales rising 0.6% on a seasonally adjusted basis from May and up 5.8% unadjusted year over year. In May, sales dipped 0.3% month to month but rose 6.3% over 12 months.

June sales gained in seven of nine categories on a yearly basis — led by online retailers, grocery stores and building materials/garden supply stores — and down in two categories month to month, NRF reported.

Grocery and beverage stores saw sales edge up 0.4% month over month seasonally adjusted in June and 7.5% unadjusted year over year. Among other retail categories in the food, drug and mass channel, sales declined 0.2% month over month seasonally adjusted and rise 2.1% unadjusted year over year for general merchandise stores, while health and personal care stores (including drugstores) saw sales dip by 0.1% month over month seasonally adjusted and by 0.5% unadjusted year over year, NRF reported.

“June’s numbers show consumers are powering through price pressures, but inflation is eating away at savings built up during the pandemic and is wiping out recent income gains,” according to NRF Chief Economist Jack Kleinhenz. “Inflation remains a challenge to consumers trying to make ends meet and will continue to be an issue, even if it cools down in the months ahead. Despite that, consumers are holding up notably well and continuing to spend.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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