Retail Sales of Groceries Bounce Back in June
In a recent report, grocery sales in June 2026 reached a significant milestone, amounting to $75.91 billion. This figure represents a 2.7% year-over-year (YoY) increase, mirroring the 2.7% YoY inflation rate for groceries.
The surge in grocery sales can be attributed to several key factors. Firstly, food price inflation played a significant role, with the Consumer Price Index for food at home rising approximately 2.4% over the past year. Notable price increases were observed in eggs (up 27.3%), meats, poultry, fish, dairy products, and beverages.
Another contributing factor was the shift towards online grocery shopping. Consumers spent $9.8 billion on groceries online in June, marking a 27% rise from the previous year. This increase in online sales more than offset slight declines in in-store grocery sales.
Consumer resilience amid price pressures also played a crucial role. Despite overall retail sales growth slowing in June 2025 and consumers being cautious due to tariff concerns, grocery sales rose in line with inflation, reflecting steady demand.
Promotional activity and demand shifts in related categories also contributed to the rise in grocery sales. Consumers responded to pricing dynamics across sectors, maintaining grocery spending even as some categories like furniture and building supplies declined.
Interestingly, unit sales remain flat in several categories, including produce, bakery, and frozen goods. However, meat and dairy are exceptions with robust unit and volume growth in addition to dollar growth.
The report further reveals that sales at grocery and beverage stores rose 2.59% YoY unadjusted. Despite a slight dip of 0.1% from May to June on a seasonally adjusted basis, the reported 0.6% sales bump in June was better than analysts' 0.1% expectation.
Sales at general merchandise stores also rose 0.5% from May to June. Meanwhile, sales at health and personal care stores rose 0.5% during the same period.
Overall, retail sales rebounded in June, up 0.6% compared to a 0.9% dip in May. Anne-Marie Roerink, principal at 210 Analytics, noted that consumers continue to grocery shop often while carefully buying only what they need.
In conclusion, the grocery sector continues to thrive amid inflation and changing consumer behaviour. The rise in online grocery sales and consumer resilience are key drivers of this growth, with meat and dairy being notable exceptions in terms of robust sales growth.
- The rise in grocery sales has also been influenced by the growing popularity of online shopping, with consumers spending more on groceries online than ever before, reflecting a 27% year-over-year increase in June 2026.
- While the weather has not been a direct factor in the surge of grocery sales, the robust unit and volume growth in meat and dairy could potentially be attributed to barbecue season, as these are commonly grilled items during good weather conditions.
