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Grocery store sales stay on the rise in May

Overall U.S. retail sales dip from April as high inflation gives shoppers pause

Russell Redman

June 17, 2022

3 Min Read
Costco checkout-groceries.png
Grocery store sales edged up 1.2% month to month and 8.7% year over year (adjusted) in May, the U.S. Census Bureau reported.Costco

Despite an overall dip in U.S. retail sales, grocery store sales registered strong growth in May as elevated inflation lifted prices but led many consumers to rein in spending in discretionary categories.

May U.S. retail and foodservice sales totaled $672.87 billion (seasonally adjusted), down 0.3% from April but up 8.1% from May 2021, the U.S. Census Bureau reported in advance estimates released this week. Retail trade sales — excluding motor vehicles and parts stores, gas and repair stations — fell 0.4% sequentially to $587.89 billion in May yet were up 6.9% from a year earlier.

Grocery stores saw sales edge up 1.2% month to month and 8.7% year over year to $69.95 billion (adjusted) in May, the Census Bureau said. Sales at all food and beverage stores rose 1.2% sequentially and 7.9% year over year to $78.17 billion (adjusted) for the month.

For April, grocery store sales were flat from March and up 8.3% from a year earlier, while food and beverage store sales dipped 0.1% sequentially but increased 7.9% year over year.

May 2022 US retail sales_US Census Bureau.png

Year-to-date through May 2022, food and beverage store sales were up 7.7% year over year to $376.87 billion (unadjusted), including an 8.5% uptick to $339.02 billion at grocery stores over the five-month period.

The National Retail Federation noted that ongoing inflation and higher prices for nondiscretionary items like food and fuel swayed consumers to slow retail purchases.

Related:Food-at-home prices in May up 11.9% from a year ago

Last week, the U.S. Bureau of Labor Statistics (BLS) reported that the May Consumer Price Index (CPI) rose 1% month to month (seasonally adjusted) and 8.6% year over year, the highest 12-month increase thus far in 2022. May’s food-at-home index jumped even higher, up 11.9% year over year and marking the largest gain since the 12 months through April 1979, according to BLS. The month-over-month rise in the food-at-home index continues to be steep in 2022, up 1.4% in May after increases of 0.9% in April, 1.5% in March, 1.4% in February and 1% in January.

“Retail sales are reflecting Americans’ growing concern about inflation and its impact on the cost of everything from groceries to gas,” according to NRF President and CEO Matthew Shay. “Retailers are doing what they can to keep prices down, but we continue our call on the administration to repeal unnecessary and costly tariffs on goods from China to relieve pressure on American consumers and their family budgets.”

Washington-based NRF’s estimate — which excludes automobile dealers, gas stations and restaurants to focus on core retail — indicated that May retail sales were unchanged on a seasonally adjusted basis from April but up 6.7% unadjusted year over year. In April, sales gained 0.4% month over month and 5.5% over 12 months.

Related:U.S. e-grocery sales trend down again in May

May sales rose in eight of nine categories on a yearly basis — led by building materials stores, online retailers and grocery stores — were down in nearly half the categories month to month, NRF reported. Grocery and beverage stores saw sales climb 1.2% month over month seasonally adjusted in May and 7.1% unadjusted year over year.

Among retail categories in the food, drug and mass channel, sales increased by 0.1% month over month seasonally adjusted and 0.9% unadjusted year over year for general merchandise stores, while health and personal care stores (including drugstores) saw sales dip 0.2% month over month seasonally adjusted yet rise 5.8% unadjusted year over year, NRF reported.

“There’s been little relief from inflation, and we expected some cooling off in sales in reaction to prices, NRF Chief Economist Jack Kleinhenz commented on May retail sales. “There have been swings across sectors that reflect the impact of both higher prices and supply chain disturbances, and higher interest rates are expected to curb spending going forward. As inflation continues, consumers are looking for ways to stretch their dollars by saving less, tapping into savings accumulated during the pandemic and increasing their use of credit.”

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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