GO - Retail sales breakdown: Grocery store spending pulls back in April

2023-05-16 08:55:55 ET

Retail sales rose less than expected in April as some signs of consumer pullback and inflation moderation crept into the report. The grocery store category stood out with a 0.4% decline in April from March and only a modest 3.7% year-over-year rise. In general, higher pricing has been masking a notable drop in volume for many grocery categories. Analysts have been pointing to higher prices and shrinkflation as reasons consumers may be altering their food buying habits.

The pullout from the retail sales report is of interest to Kroger ( KR ), Ingles Markets ( IMKTA ), Weis Markets ( WMK ), Sprouts Farmers Market ( SFM ), Natural Grocers by Vitamin Cottage ( NGVC ), Village Super Market ( VLGEA ), Albertsons ( ACI ), and Grocery Outlet Holding ( NASDAQ: GO ). Walmart ( WMT ) and Target ( TGT ) are also impacted by grocery spending trends as well. Both WMT and TGT fell by about 0.5% in the premarket session on Tuesday, while Kroger ( KR ) was off 0.4% .

More on grocery store stocks:

• Albertsons/Kroger Merger Won't Likely Be Consummated, Indicators Suggest
• Kroger's Simple Truth - Defensive During Recessions
• Sprouts: A Potential Bulletproof Business Model For The Next Recession
• Walmart: Buy The Market Amidst Recession

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