Softening consumer demand will require retail products that attract both value seekers and luxury buyers, according to a new analysis from The NPD Group.

General merchandise unit sales in the US in April were 7% lower than a year ago, leading to a 1% decline in sales revenue.  And as inflation continues to push up pricing, analysts there say differences in household spending that came into sharp focus in 2021 will continue to be more pronounced this year. In particular, higher-income consumers are increasingly responsible for an ever-larger share of online retail sales.

 "Higher retail prices have buffered demand declines but their escalation, combined with rising gas prices, the end of stimulus payments, and the general uncertainty surrounding current economic and world events, are factors on the minds of many consumers," said Marshal Cohen, chief retail industry advisor for NPD. "Now retailers are faced with a consumer base that has more complex financial dynamics influencing their inclination to spend."