Grocery Sales Up Slightly in December as Private Label Hits Record High
People typically flock to grocery stores in December, as they stock up for holiday gatherings and pick up gifts and gift cards. The latest sales data from the U.S. Census Bureau shows that retailers indeed got a bump from the season, but it wasn’t an outsized gain.
According to the latest report, advance estimates of overall retail and foodservices sales for December rose 0.4% from November to reach $729.2 billion. On a yearly basis, general sales were up 3.9% last month.
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Sales increased at a slightly higher pace in the grocery sector, which saw a 0.9% uptick over November to top $75.8 billion. Grocery store sales edged 0.8% higher from the third quarter of 2024 to the fourth quarter. On a year-over-year (YoY) basis, grocery sales rose 3.3%.
Chip West, retail and consumer behavior experts at marketing and supply chain solutions company RRD, said that the 1% is in line with the timing of holiday celebrations and family dinners, but the recent government numbers reveal other trends. “While foot traffic looked to be up nominally, online grocery sales increased significantly in December, signaling the importance of convenience for consumers in this hectic and busy time of year,” he said.
As inflation continues to trend upwards – as the latest CPI numbers indicate this week – West said that affordability remains a key driver in the opening weeks of 2025. “These consumers who have long been impacted by prolonged inflation, will certainly be motivated by deals and promotions. Private labels remain a key focus for many grocers, while leading non-grocery retailers continue to expand their private label offerings,” he remarked.
On that note, other new research affirms the ongoing strength of store brands. The Private Label Manufacturers Association (PLMA) reported that sales of store brands surged $9 billion to a record $271 billion last year versus 2023. The latest Circana Unify+ data cited by PLMA shows that dollar sales of private label products jumped 3.9% from Jan. 8 to Dec. 29, 2024 on a YoY basis.
“Sales of store brands hit a record high last year,” said Peggy Davis, PLMA’s president. “The quality, value and innovation that store brands provide can’t be beat.”
