CHICAGO — Jan. 15, 2024 — Circana ™, the leading advisor on the complexity of consumer behavior, today announced the launch of the third cohort of its Diversity Advantage Program. This program empowers minority- and women-owned businesses through the provision of valuable consumer data, coaching and consultancy services, guiding them toward business growth and success. The third cohort of DAP includes 11 businesses within the consumer packaged goods and general merchandise industries, marking a total of 58 participants known as “DAPers.” Each DAPer gains free access to Circana’s Liquid Data Go platform, legal support and exclusive DAP Masterclass Workshops that focus on training for essential business soft skills and knowledge. “Since launching DAP with our 27 inaugural participants in 2021, our mission has remained simple — to create a fair and equitable consumer goods ecosystem and to empower DAPers to achieve economic and organizational growth,” said Boris Oglesby, executive vice president and practice leader, Circana. “We are proud of the strong impact that the program has had in helping DAPers navigate common business practices and growth, as well as the more unique challenges that come with being a minority-owned business. We’re proud to be champions for many businesses and CPG categories that have previously had to fight for more mainstream attention.” New participants in Circana’s Diversity Advantage Program include: A Dozen Cousins A Friendly Bread Alaffia Black Girl Sunscreen International Food Solutions Neilly’s Partake Foods Seoul Juice Shine Water Urban Hydration Youthforia As the program enters its third year, DAP is backed by the support of more than 250 Circana employees in the United States and the United Kingdom, who contribute over 15,000 hours annually to support participants. The program is strengthened by collaboration with 11 retailer partners. Circana selects program participants from businesses accredited by the Women’s Business Enterprise National Council and the National Minority Suppliers Development Council, as well as those recommended by retailers with their own diversity supplier programs. To be eligible to participate in Circana’s Diversity Advantage Program , companies must have annual sales ranging from $1 million to $25 million and can be recommended by a participating retailer. For more details about the program and information on how to apply, interested parties can contact DAP@Circana.com . The new DAPers also are affiliated with additional accredited programs, such as Disability:IN, U.S. Pan Asian American Chamber of Commerce, National Gay & Lesbian Chamber of Commerce, and National Veteran Business Development Council, to name a few.

The largest expansion of multi-outlet data since 2011 unites all major retailers; Circana provides the largest census-based point-of-sale coverage of CPG core channels Expansion of MULO+ provides Circana’s clients with best coverage in the CPG industry; when combined with general merchandise coverage, distinguishes Circana as most complete accurate market measurement provider in the retail industry CHICAGO – Jan. 17, 2024 – Circana , formerly IRI and The NPD Group, today announced a significant expansion to its multi-outlet (MULO) data universe across U.S. CPG channels, including grocery, drug, mass market, military commissaries, club, and dollar stores, as well as e-commerce. The launch of MULO+ will expand Circana’s point-of-sale (POS) coverage by more than 15% and include sales data from all major e-commerce as well as specialty beauty for the first time. This expansion provides unrivaled accuracy with 90% of CPG dollar sales sourced from census POS data, solidifying Circana’s position as offering the most comprehensive and accurate POS measurement in the CPG retail industry and furthering its mission to provide clients with the most complete view of the consumer available anywhere. “We strive to empower our clients with an unparalleled understanding of the dynamic retail landscape, and we are committed to continually expanding our coverage and streamlining access to the most accurate POS data,” said Wei Lin Wong, president, Global Retail, Circana. “With the launch of MULO+, Circana proudly remains at the forefront of providing exceptional and complete CPG sales data, empowering our clients to have complete confidence when making big decisions for their business.” MULO+ will efficiently track both private and public companies with complete, weekly CPG data updates. While the size of coverage expansion varies slightly by product, MULO+, available in January 2024, unlocks opportunities for clients across all CPG industries. Benefits include: Unparalleled omnichannel insights – MULO+ aggregates CPG sales data from top channels across food, drug, mass, club, dollar, and military. MULO+ will include 11 new retailers and will now deliver both in-store and online sales insights. Unrivaled accuracy and reduced bias – The expanded coverage diminishes the reliance on projections. POS data remains the cornerstone of any marketplace view grounded in truth and accuracy. Unbeatable efficiency – By consolidating all data from accounts and channels into a unified model, clients will now experience superior ease of access with no manual data integration required. “The launch of MULO+ brings a wealth of advantages that extend into all of Circana’s measurement and analytic solutions,” said Jeremy Allen, president, Global Consumer Packaged Goods, Circana. “With significantly increased coverage, clients will see more comprehensive, item-level sales and share results, and more robust analytics based on POS data that covers almost all of their product sales. MULO+ will bolster all Circana solutions while enabling clients to make more informed decisions to accelerate growth.” To learn more about MULO+, visit https://www.circana.com/solutions/mulo/ . Circana clients should contact their account representative to learn more about upgrading to the expanded set of MULO+ geographies.

Acquisition will Augment Circana’s Sports Tracking Expertise and Insights CHICAGO and KISSIMMEE, Fla. – Jan. 23, 2024 – Circana ™, formerly IRI and The NPD Group, today announced that it has entered into an agreement to acquire Golf Datatech, the golf industry’s leading independent market research firm. Golf Datatech tracks and delivers insights into golf retail sales, inventory, pricing, distribution, and consumer behavior across the U.S., U.K., Sweden, France, and Germany. Golf Datatech’s highly complementary, valuable data assets and talented team of industry experts will augment Circana’s existing sports tracking expertise and insights, broadening Circana’s coverage of the U.S. golf market to include all major channels of retail sales, including golf specialty, green grass shops, mass retailers, sporting goods, and e-commerce. “We are thrilled to enter into this agreement with Golf Datatech to expand Circana’s sports tracking business with deeper insights into the golf market,” said Kirk Perry, president and chief executive officer of Circana. “Golf Datatech’s market leadership, combined with Circana’s existing capabilities, will provide clients with a more comprehensive view of the market and unmatched insights to drive their growth. This acquisition supports our strategy of providing clients with a complete view of the customer, store, and wallet across categories and geographies.” Tom Stine, a founder and one of the three principal partners at Golf Datatech, said, “We are pleased and excited to join the talented team at Circana, advancing a shared vision of accurate and timely insights that empower companies to make informed decisions. When Golf Datatech was founded in 1995, there was very little on-/off-course data available. Over the last nearly 30 years, we have carved out a unique place in the global golf industry providing unbiased insights, and we look forward to bringing our expertise and proven track record of success to Circana to be able to offer more valuable insights and solutions to clients around the world.” The closing of the transaction is subject to customary closing conditions and is expected to be completed by March 2024. Under the terms of the agreement, Golf Datatech will operate as a wholly owned subsidiary of Circana. Circana plans to integrate Golf Datatech’s data assets into their leading Liquid Data® technology platform. About Golf Datatech, LLC Golf Datatech, LLC (www.golfdatatech.com) was established in 1995, and since that time it has become the industry’s gold standard for accurate and timely information on retail sales, inventory, pricing, and distribution of golf products through the on and off course channels. In 1998, the Company extended its reach into consumer research, strategic sales, and marketing consulting. In 2006, the Company expanded its retail and consumer research programs into the United Kingdom and in 2008 added markets in Europe. Golf Datatech now produces the first-ever digitally driven golf retail sales reports for the U.S., UK, Sweden, France and Germany. Golf Datatech Media Contacts: U.S. John Krzynowek +1 (847) 778-0325 jkrzynowek@golf-datatech.com Tom Stine +1 (407) 399-2616 tstine@golf-datatech.com UK/Europe Phil Barnard +44 7973 232580 pbarnard@golf-datatech.com

Appoints Jeremy Allen to Newly Created Role of Chief Commercial Officer CHICAGO — Feb. 1, 2024 — Circana ™, formerly IRI and The NPD Group, and the world’s leading advisor on the complexity of consumer behavior, today announced enhancements to its global commercial organization to better meet clients’ evolving needs. The commercial organization will encompass Circana’s global client verticals and solution groups. Jeremy Allen, previously president, Consumer Packaged Goods, has been appointed to oversee the function in the newly created role of chief commercial officer. “Our global commercial function will better position Circana and our talented teams across the organization to serve clients across sectors and geographies,” said Kirk Perry, president and chief executive officer, Circana. “These enhancements demonstrate the depth of our commercial expertise across Circana and mark another milestone in our continued evolution as a unified organization. Jeremy is uniquely positioned to drive our global commercial strategy, leveraging his vast experience serving clients across sectors and at both of Circana’s heritage organizations. Under Jeremy’s proven leadership, our collective commercial organization will be focused on leveraging Circana’ s unparalleled technology, solutions, and insights to help clients around the world find new opportunities and spark growth.” The leadership of Circana’s enhanced commercial organization includes: Global Client Verticals Wei Lin Wong , who has held several leadership positions for Circana and its heritage companies’ retail and strategy teams, has been named president, Consumer Packaged Goods . Joanne Sackett , formerly the head of Circana’s Beauty, Sports, Apparel, Footwear, Accessories & Luxury verticals, has been appointed president, General Merchandise . Rob Hill , who most recently served as Circana’s president of Retail for North America, has been named president, Global Retail . Global Solution Groups Brad Shelton , formerly president of Collaborative Gateway Solutions, has been named to the newly created role of president, Retail and Manufacturer Collaboration. Patty Altman , who previously served as executive vice president, Consumer and Shopper Insights, has been named to the newly created role of president, Consumer and Shopper Insights and E-Commerce. Amy Marentic will continue to serve as president, Media and Analytics Solutions . These changes coincide with the plans of Tim Bush, Circana’s current president, General Merchandise, to retire from Circana by the end of 2024 after more than two decades of tremendous contributions to Circana and its heritage companies. Bush will continue to support Circana by leading a handful of critical strategic initiatives throughout the duration of his tenure. Perry added, “On behalf of our entire leadership team, I thank Tim for his outstanding service to our company and our clients throughout his esteemed career, and we wish him the best in his next chapter. In the meantime, we deeply appreciate his gracious, continued support for Circana at this exciting time in our ongoing growth journey.”

Supporting shoppers by investing in innovation and promotions is key for retailers. CHICAGO — March 7, 2024 — Circana ™, the leading advisor on the complexity of consumer behavior, ​​today released a new report on the state of private brands (also referred to as store brands or private labels). Despite high inflation, private brands have experienced growth, surpassing $217 billion in sales in the United States market. The report, “CPG Private Brands Update,” provides an update on the store brand landscape, and identifies retailer opportunities to increase demand for their own brand and private brand offerings. “Private brands are increasingly capturing market share from name brands, experiencing growth in both dollar sales and units,” said Mary Ellen Lynch, principal, Center Store Solutions, Circana. “This trend is driven by consumers, particularly those with children, as well as millennial and Gen X households without children, who are strategically employing a variety of methods to stretch their dollars amid high inflation.” Key insights from the report include: Current State of the Private Brands Landscape Dollar sales of private brands increased by 6% in 2023, and units increased by 0.9% Sales were higher for private brand food and beverage (6.7%) compared to nonedible (5.1%) Private brands gained share from name brands, increasing to 25.5% of total unit sales, up from 24.7% in 2022 Private brands grew both unit and unit share across general food, shelf-stable beverages, and refrigerated foods, as well as in beauty and home departments Within food and beverage, private brands outperformed name brands, based on dollars and units for the core pantry Retailers are treating their brands similarly to national brands by innovating with more clean labels, premium offerings and marketing support Who is Purchasing Private Brand Products? Households with children represent 35% of private brand food and beverage unit purchases, while millennial and Gen X households with no children represent 36% of sales Within those same cohorts, middle-affluent shoppers are the most engaged with private brands, yet lower- and upper-affluent millennial and Gen X households with no kids are driving growth Opportunities for Private Brand Growth Consumers are recognizing the value of private brands, even in the salty snack aisle, where name brands typically dominate Retailers can focus on the ways consumers are cooking today, and demonstrate how private brands work with small appliances, like air fryers and instant pots, for easy-to-prepare meals Promoting store brands by leveraging digital marketing to lock in valuable cohorts like younger shoppers is critical Retailers are increasingly focused on expanding shopper trials of their private brand products to deepen trust Source for data: Circana MULO+, Total U.S., YE December 31, 2023 Press Contacts Shelley Hughes Email: shelley.hughes@circana.com 312-731-1782

SalesTrack offers weekly performance insights across eight global markets TORONTO — March 12, 2024 — Circana ™, the leading advisor on the complexity of consumer behavior, ​​today announced the launch of SalesTrack™, a dynamic tool designed to track brand performance relative to competition on a weekly basis within the Canadian foodservice industry. SalesTrack offers participating restaurants invaluable insights into the impact of marketing and operational initiatives, empowering them to benchmark their performance against their competitors and make informed decisions that drive growth.  With coverage spanning eight key global markets, SalesTrack currently collaborates with chains in North America, Europe, and the Middle East, offering a broad perspective on industry trends and benchmarks. SalesTrack provides weekly reporting of critical sales metrics, delivered just five days after the close of each week, enabling restaurants to make informed decisions quickly, driving efficiency and profitability in their businesses. “SalesTrack is more than just data; it’s a strategic advantage for restaurants,” said Vince Sgabellone, industry analyst, Foodservice, Circana. “With this innovative solution, restaurants gain timely access to valuable insights into their performance, allowing them to identify trends, optimize operations, and stay competitive in this rapidly evolving industry.” Key benefits of SalesTrack include: Sales Decomposition: Gain insights into the factors driving sales changes, whether it’s ticket count or ticket value. Store Efficiency: Compare per-store sales and ticket counts against market averages to optimize operational efficiency. Absolute Ticket Value: Benchmark ticket values against competitors to inform pricing strategies. Store Count Impact: Analyze same-store and total system performance to identify organic growth opportunities. Customizable Weeks: Drill down into specific weeks to assess the impact of initiatives and events. SalesTrack represents a significant expansion of Circana’s capabilities in Canada, complementing the existing consumer foodservice tracking product, CREST®. By partnering with Circana, restaurants not only gain access to invaluable data but also contribute to the refinement of Circana’s consumer insights, creating a mutually beneficial ecosystem. For more information about SalesTrack and how to partner with Circana, please contact Laurel Brown .

CHICAGO – March 18, 2024 – Circana ™, a leading advisor on the complexity of consumer behavior, today announced its annual Growth Leaders rankings. The firm analyzed the growth performance of hundreds of public and private consumer packaged goods (CPG) companies ranging from $100 million to $60 billion in annual sales to develop the rankings. Circana will highlight the drivers of success in a two-part webinar series in March and a full report, which will be published in early April. “Our 2023 Growth Leaders are a testament to the agility required to overcome the shifts in consumer buying behavior as they battled increased economic and inflationary pressures,” said Sally Lyons Wyatt, global executive vice president and chief CPG and foodservice advisor, Circana. “Through continuous innovation and consumer engagement, these leading companies successfully struck a balance by offering consumers the right blend of benefits, enjoyment and value.”   Key Findings CPG 2023 industry growth saw ongoing high price inflation and volume declines, still unwinding from pandemic highs continuing the 2022 trend. Dollar sales growth for the year hit 4.2%, driven by an above-average price/mix uptick of 6.1% as overall volume declined by 1.7%. By year-end, price/mix growth slowed, and volumes started improving. Top Growth Leaders stood out with strong volumes. Overall, winning strategies included integrated consumer engagement, continuous newness, premium and value bifurcation, and using artificial intelligence for operational efficiency. The largest CPGs maintained strength in their scale, while CPGs between $500 million and $1 billion continued to gain share in 2023. Companies under $500 million collectively contributed less to growth than in the past couple of years. While still considered Growth Leaders, the smallest companies contributed less to growth, indicating that the pandemic boost of recent years is over. PRIME Hydration epitomized growth among small manufacturers, delivering an experience to a targeted audience and hitting the market through the right channels. Growth Leader Rankings Constellation Brands was the 2023 Growth Leader among $8 billion-plus companies with leading sales growth and market share performance. Molson Coors, L’Oréal, Coca-Cola, and P&G completed the top five companies in this group. CJ CheilJedang topped the list of $2.5-$8 billion companies, followed by Gruma and Chobani. Among $1-$2.5 billion companies, Celsius energy drinks led the list, followed by e.l.f. Cosmetics, Sovos Brands, BellRing Brands, and Pharmavite. The less than $1 billion group was fueled by social media, not only influencers but also relevancy. This group found a way to break through the noise and capture consumers’ attention through integrated engagement. The $500 million-$1 billion group is led by PRIME Hydration and also includes Idahoan Foods, Ghost Beverage, and Milo’s Tea Company. Feastables led the $100-$500 million group, which also includes OLIPOP, Dr. Squatch, and BeatBox Beverages. The full list of Growth Leaders will be released during Circana’s two-part webinar series on Tuesday, March 19, and Thursday, March 21. These webinars will host executives from several of the growth-leading companies who will share how they view the market, their drivers of success, and what capabilities leading CPGs will prioritize moving forward. Register here . *Source: Circana MULO+ with Convenience POS data, ending Dec. 31, 2023.

Circana, the leading advisor on the complexity of consumer behavior, today announced that Holly Knightly, currently executive vice president of Global Finance, Performance, and Transformation at Circana, has been promoted to chief financial officer (CFO), effective Aug. 12, 2024. CHICAGO — Aug. 8, 2024 — Circana ™, the leading advisor on the complexity of consumer behavior, today announced that Holly Knightly , currently executive vice president of Global Finance, Performance, and Transformation at Circana, has been promoted to chief financial officer (CFO), effective Aug. 12, 2024. Already a member of Circana’s Executive Leadership Team, Knightly will lead the global finance and strategy organization including planning, strategy, accounting, treasury, tax, reporting, and investor relations. Knightly succeeds Anne Bramman, who will transition over the next few weeks following a successful tenure helping to bring together the strategy, growth, financial planning, systems, and operations for Circana’s heritage companies, IRI and The NPD Group, as the company transitioned into one merged Circana. “We are delighted to appoint Holly as CFO, as we continue to drive Circana’s financial strategy forward, accelerate growth across our business, and provide differentiated consumer insights and category expertise to help our clients succeed,” said Kirk Perry, president and chief executive officer of Circana. “Holly is an accomplished finance and business executive who has successfully delivered strong results in dynamic environments at both public and private companies. Throughout her time with Circana, Holly has continuously demonstrated effective leadership and instilled excellent operating discipline within our teams globally, and we look forward to her continued contributions in this new role.”   “It is an honor to serve as CFO at such an important moment in Circana’s continued evolution as a unified organization,” said Knightly. “Circana is well positioned to continue its leadership advising brands and retailers across sectors on how to grow well into the future, and I firmly believe in our strategy to continue delivering exceptional outcomes for our more than 7,000 clients across the globe. I look forward to continuing to work with Kirk and the leadership team, alongside our talented finance and strategy team members, to build on our strong foundation.”   “We thank Anne for her leadership in helping to execute our successful post-merger integration, building momentum across teams globally, and positioning Circana’s leading technology and capabilities to deliver long-term value creation for all stakeholders. Anne played a key role in enhancing the organization’s strategic capabilities, including deploying our finance technology platform and launching Circana’s global transformation program, and we wish her all the best in her next chapter,” said Perry. “I am pleased to have been part of Circana at such a pivotal time for the business and proud of the many accomplishments we achieved as a team while elevating our finance and growth function,” said Bramman. “The company continues to make transformational progress as a leading advisor on the complexity of consumer behavior. I look forward to seeing Circana continue to succeed well into the future.”

New partnership enables advertisers to elevate media strategies with a complete view of consumers CHICAGO — April 9, 2024 — Circana ™, a leading advisor on the complexity of consumer behavior, today announced a new partnership with Google Cloud that will enable advertisers to leverage Circana’s industry-leading data assets to drive improved returns on media investments in Google Cloud’s BigQuery. Over 5,000 Circana ProScores® are now available in Google Cloud and can be directly accessed by customers in BigQuery for convenient insights, planning, and activation. ProScores audiences are purchase-based, modeled segments representing approximately 126 million U.S. households, offering scalable activation opportunities across households with the highest likelihood to purchase a given category, brand or sub-brand. Additional data from Circana, including transactional data, will be available in Google Cloud in the coming months, providing granular, high-level insights about the purchase behavior of key consumer cohorts. “We are thrilled to join Google Cloud’s Partner Advantage Program and expand access to Circana’s wealth of data assets,” said Amy Marentic, president, Global Solutions, Circana. “Combining Circana’s industry-leading data with Google’s cutting-edge technology empowers our clients to unlock sophisticated media planning and measurement backed by powerful, privacy-protected consumer insights. This comprehensive view informs data-driven business strategies and enables best-in-class media activation — all with greater ease.” The partnership between Circana and Google Cloud enables clients to combine Circana, public Google datasets, and first-party data into one unified ecosystem for specific analytical use cases rather than leveraging disparate data systems. This streamlined approach enhances data integration and increases speed to insights, ultimately boosting operational efficiency.  “We are excited to partner with Circana to enable customers to quickly create the insights needed to achieve scale and reach their target audiences effectively” said Stacy Trackey Meagher, vice president, Google Cloud. “By making Circana data available in BigQuery, customers are able to combine their first-party data with trusted Circana data, unlocking powerful analytics and insights.”

Emphasis on affordability comes into focus when appealing to today’s practical and value-driven consumers CHICAGO, July 18, 2024 — U.S. retail sales delivered a repeat performance of May results in June. During the four weeks ending June 29, 2024, revenue across the combined view of discretionary general merchandise and consumer packaged goods (CPG) once again grew 1%, and unit demand remained level with the same time last year. The steadying of unit sales, flattening average selling price comparisons, increased value options and promotional engagement are signals of continued movement toward consumer spending stabilization, according to Circana ™, the leading advisor on the complexity of consumer behavior.   “A growing group of consumers are living with a budget and assessing the need with an eye on value,” said Marshal Cohen, chief retail industry advisor for Circana . “They are also figuring out how to save money without giving up what they really want — cutting back in one area of their budget to free up money to spend on the occasional splurge purchase.”  Amid the stabilization occurring across discretionary and non-discretionary retail spending, there are stories of growth. Top-performing products show consumers’ willingness to spend lives on. The desire for little luxuries and social media’s influence continue to break through budgetary boundaries. Through the first half of 2024, the hottest sellers ranged from categories like lip makeup and hair styling to portable beverageware and specialty kitchen appliances. Cutting back in one area of spending helps to fuel needs-based spending like auto maintenance, as well as splurge purchases like sprucing up a wardrobe, powered vehicles for the kids and taking up pickleball as a new hobby. The appeal of innovative products remains paramount. Circana’s New Product Pacesetters 2024 report reveals consumers are most eager to try new food and beverage products like carbonated sports and energy drinks and meal solutions. “Consumers simply need to be given a reason to buy — a reason that resonates enough to warrant allocating part of their limited budget,” added Cohen. “Growth in the current retail climate depends on not only taking advantage of spontaneous event-based spending, but also identifying and activating on the reasons that will stimulate spending and create new sales peaks.”

Final wave of back-to-school spending is delayed, but there are opportunities to disrupt evolving consumer behavior and future shopping seasons CHICAGO, September 16, 2024 — Traditional retail milestones, like the back-to-school shopping season, are being reshaped by changing consumer behavior, according to Circana ™, a leading advisor on the complexity of consumer behavior. During the four weeks ending August 31, 2024, total U.S. retail sales revenue across the combined view of discretionary general merchandise and consumer packaged goods (CPG) declined 1% when compared to the same four weeks last year, and unit demand remained level. Year-over-year comparisons reveal a shift in performance, as sales revenue of each retail segment declined slightly. Retail food and beverage sales revenue was 2% lower than last year, with flat unit sales. Both sales revenue and demand of non-edible CPG declined 1%. Once again, discretionary sales declined 3% in dollars, but unit sales grew 1%. “Consumers are buying the same amount of product, but they are spending less, and that spending is aligned with current needs,” said Marshal Cohen, chief retail industry advisor for Circana . “The defined block of time when that back-to-school spending traditionally occurred has faded, now spread across three waves of shopping and multiple shopping seasons.” This year’s back-to-school spending is following a pattern similar to last year, but it’s falling short of last year’s performance. The first two waves of back-to-school shopping, which began in the early summer months with back-to-college preparation and retailer promotional events kicking off school supply purchases, continued through August. The need for school supplies and new shoes was apparent with the 4% increase in unit sales of both office supplies and leisure footwear. But the third wave of shopping, which focuses on the consumer wardrobe, was lacking in August as unit sales of apparel declined 3% compared to last year. America’s casualization has depleted the importance of back-to-school shopping for fashion. While school necessities, like leisure footwear, portable beverageware, computers, tablets, and e-readers, were among the categories that rose to the top of the shopping list, innovation was a common thread across all of the fastest-growing discretionary general merchandise categories in August. Prestige beauty — namely hair, fragrance, and skincare — and toy building sets rounded out the top performers for the month, making it clear that innovations in design, functionality, and marketing are key to attracting consumers to spend outside their immediate need considerations. “Consumers may be waiting for the weather to shift to buy what they need for changing temperatures, but with the right product or product message, marketers still can inspire desire-based purchases,” added Cohen. “Growth opportunities lie in wait for marketers prepared to grab them at a new time, or with a new approach, diminishing the role of traditional shopping seasons and indicators. Lackluster back-to-school spending no longer signals soft holiday spending to follow; instead, there may be lingering benefits of pent-up demand.”  About Circana   Circana is a leading advisor on the complexity of consumer behavior. Through superior technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet, so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at www.circana.com .  Contact:   Janine Marshall  janine.marshall@circana.com

Despite a challenged retail environment, toy sales grew 26% compared to 2019 CHICAGO, January 25, 2024 – Circana , a leading advisor on the complexity of consumer behavior, today announced the U.S. toy retail sales performance results for 2023. Despite a year-over-year 8% decline in dollar sales in 2023, the industry has experienced an overall $5.7 billion increase in sales since 2019, driven by average selling price (ASP) growth. Dollar sales grew, on average, by 6%, year-over-year, during the past four years. Several headwinds emerged in 2023, including continued inflation, depleted consumer savings, and rising consumer credit card debt. These factors contributed to declines in consumer spending, as shoppers focused more on the “must-haves” and cut discretionary spending. In the fourth quarter, specifically, dollar sales decreased by 8% compared to last year, according to Circana’s Retail Tracking Service, while unit sales declined at a slightly slower rate of 6% and ASP dropped by 2%. “While 2023 was a challenging year for the U.S. toy industry, the four-year compound annual growth rate remains positive,” said Juli Lennett , vice president and toy industry advisor at Circana. “Economic challenges have impacted overall consumer behavior, but let’s not overlook the fact that we have seen an influx of new consumers over the past few years. Keeping these consumers interested with new and exciting products is important for driving future growth.” 2023 Highlights Within supercategories, three of the 11 supercategories tracked by Circana experienced growth in 2023. Building Sets had the most significant dollar gain of $220 million and the fastest growth, with LEGO Icons, LEGO Disney Classic, and LEGO Speed Champions dominating the growth in the category. Plush had the second-largest dollar gain, up $31 million, with Pokémon, Furby, Harry Potter, Snackles, Sesame Street, and Cookeez Makery as the main drivers of growth. Within Vehicles, which grew $6 million, the largest increases came from Hot Wheels, The Fast and The Furious, and Ninja Turtles. Outdoor and Sports Toys was the largest supercategory with a 16% share of all toy dollars; however, it faced the largest dollar decline. The top toy properties of 2023 included Pokémon, Barbie, Squishmallows, Star Wars, Marvel, Hot Wheels, Fisher-Price, LEGO Star Wars, Disney Princess, and Melissa & Doug. “Consumers will continue to face financial pressures in 2024, but they will not forgo the important toy buying occasions throughout the year,” said Lennett. “To succeed in 2024, a focus on marketing, seasonality, innovation, and value is critical.”

By Sarah Marzano, Director, Retail, Circana The American Society for the Prevention of Cruelty to Animals (ASPCA) estimates that nearly one in five households added a dog or cat during the pandemic. And according to the American Veterinary Medical Association, the percentage of U.S. households with dogs increased from 38.4% in 2016 to 44.5% in 2022, as cats went from being in 25% to 29% of households. Unsurprisingly, these trends have also spurred impressive growth in pet care product sales. In 2022 alone, year-over-year (YOY) dollar sales of pet care products tracked by Circana increased 16%. This growth was driven overwhelmingly by increases in average prices across categories. Nevertheless, we saw steady demand in pet food and pet treats, with purchase volume flat YoY amid a consumer environment characterized by volume and unit declines across many CPG and general merchandise categories. Despite our current uncertain economic environment, retailers and brands are well-positioned for ongoing growth in 2023. Following are three key trends that characterized pet-owning consumer behavior in 2022 — and that retailers and brands should plan for and monitor to optimize sales in the months ahead. Pet Owners Are Delaying Discretionary Purchases In the face of inflation, changes in how consumers buy for their pets has resembled their shopping behaviors in other categories — they’re prioritizing the essentials and cutting back on more discretionary products. While volume demand held steady in food and treats, we saw dollar and volume declines across a wide variety of pet-supply products, including collars, leashes, harnesses, pet grooming products, beds, and toys. This happened despite lower relative YOY price increases in pet supplies of 9.2% versus 14.8% for pet food. Source: Circana, Total US – Multi Outlet + Conv + Pet Specialty Channel, CY 2022 As inflation cools in 2023, it will be important to monitor price trends in pet care as well as other categories. Because it all affects consumers’ total wallet and purchase behaviors. As inflationary pressures ease, pet care suppliers and retailers must be ready to coax consumers back into making the discretionary purchases that they’ve been putting off. Cross-promoting these products to shoppers buying pet essentials will be important for basket-building, as will energizing pet-supply assortments with new and innovative products. Consumers Are Shopping in Stores More Frequently for Pet Food Pet food drove more than 50% of total pet care dollar sales in 2022. And over the past four years, we have seen number of trips increase for these purchases along with a decrease in volume per purchase. These trends show that consumers have moved away from the “stock up” behaviors they embraced during peak COVID-19. Pet treats and cat/dog litter saw similar growth trends in product trips. But pet food is the most frequently shopped category with an average of 18 trips per buyer per year. This is up 8% from 2020 and even up 7% from pre-pandemic 2019. Source: Circana, Total US – Multi Outlet + Conv + Pet Specialty Channel Among pet food subcategories, frozen and refrigerated dog food stands out as a growing trend. Though these foods comprise only 4% of total pet food sales, their YOY dollar sales were up an impressive 32%. Since these foods are also more perishable than kibble, they could be another trend that drives even more shopping occasions in the category moving forward. To take advantage of this increased in-store foot traffic, retailers should prioritize optimizing the in-store experience for both efficiency and discovery — with a focus on thoughtful merchandising that encourages cross-category shopping. Messaging and offers that highlight product innovations and emerging trends will be key in turning the opportunity posed by increased store visits into basket-building success. E-commerce Growth Shows No Signs of Abating As consumer mobility plummeted during the onset of the COVID-19 pandemic, the share of total pet-aisle dollars spent online grew 9 points to a record 36.6%. While consumers are back in stores now, they’re also buying more of their pet products online than ever. In 2022, e-commerce share in the category hit a record 42%. This far exceeds the 12% of CPG products bought online in 2022 and nearly matches the 43% e-commerce penetration seen across the general merchandise categories. Source: Circana, IRI_SYND_OMNICHANNEL Given the central role e-commerce plays in pet aisle purchases, retailers and brands must prioritize streamlining and optimizing their digital path to purchase in 2023. Optimizing product pages and product copy to effectively communicate value and solve top-of-mind consumer concerns will be key to success. So will flexible product fulfillment offerings and a robust understanding of the online pet care retail landscape and evolving consumer shopping habits. Monitoring and capitalizing on these key shopping trends will be essential in 2023 — and a great blueprint for ongoing success in an industry with strong long-term growth potential. Reach out to your Circana representative or email us at contactus@circana.com to learn how our comprehensive pet industry coverage, insights, and analysis can help you understand “the why behind the buy” and the best opportunities for future growth. Get insights straight to your inbox

With pandemic fears receding, consumers get set for holiday gatherings Good news! Consumers feel more secure about being out among others this holiday season. NPD’s Annual Holiday Survey 2022 revealed 52% of U.S. consumers are less concerned about COVID-19 than they were at this time last year, a 20-point increase. As a result, they are increasingly looking to socialize, shop, and gather with friends and family, which will naturally spur more retail growth opportunities during the holidays. In fact, the share who plan to go to a friend’s or family member’s home for the holidays has jumped by 8 percentage points compared to last year. “Whether it’s holiday apparel, auto aftermarket products, food and beverage, or home products for entertaining, there is a lot of potential for retailers and brands to tap into changes in social behavior over the holidays and make the most of what they have to offer,” said Marshal Cohen, NPD’s chief retail industry advisor . 52% of consumers are less concerned about COVID. 19 compared to a year ago, +20 pts from last year. 55% of consumers say they plan to host or visit family/friends during the holiday season, +8 pts from last year. 40% of consumers plan to have an overnight stay away from home over the holidays. Source: The NPD Group/Annual Holiday Survey, 2022. Kristen Classi-Zummo, Apparel Industry Analyst Gathering with friends, family, and colleagues will be at the top of our to-do lists this holiday season. As a result, we can expect sustained growth in dressing up throughout the rest of the year. However, as prices continue to rise across the board, the apparel industry needs to be laser focused on what’s driving consumer demand during the upcoming season. Expect hot brands, new trends, and wardrobe needs (like going to events and a change in weather) to drive consumers to spend on apparel. For many categories, consumers are being clear and deliberate with their spending — either they want it and they’ll buy it, or they don’t and they won’t. Economic headwinds chill consumer sentiment Even as consumers report feeling safer going out in the world again, increasingly negative perceptions about the economy and their own personal finances is leading nearly one-third (29%) of U.S. consumers to consider spending less during the holiday shopping season. While most shoppers plan to spend the same amount or more than last year, the share of those who plan to spend less has grown by nearly 4 percentage points over last year. Consumers are feeling less optimistic about their holiday spending than they were just a year ago. Holiday Spending Intentions % Among Total Respondents Q1. How much do you plan to spend on holiday shopping this year? Q2. Compared to last year, do you plan to spend … ? Source: The NPD Group/Annual Holiday Survey This negative shift is echoed by younger households that are more concerned about inflation affecting their holiday spending, shown by data from Information Resources, Inc. (IRI), which recently merged with NPD to create a leading global technology, analytics, and data provider. In fact, 23% of Millennials and GenX consumers — compared to 10% of older consumers — are worried that higher prices might affect their ability to afford their usual holiday celebrations. “Economic uncertainty is leading some consumer groups to think twice before spending, including high-income consumers who have managed to shore up retail industry sales throughout the pandemic,” said Don Unser, president of general retail merchandise thought leadership for NPD. “While high-earning shoppers will certainly demonstrate more resilience, those with lower incomes will have a tougher time staying within their holiday shopping budgets.” Paul Gagnon, Consumer Technology Industry Advisor With inflation driving price increases for everyday necessities, consumers expect to spend fewer dollars this holiday season on core tech products like TVs and notebook computers — either due to recent declines in average sales prices or because they are diverting budget away from these products. Interest in core holiday tech stalwarts, like TVs and headphones, are slightly down from last year, but we expect TV unit sales will still see modest growth due to strong holiday promotions. This year, as consumers prepare to spend more time away from home, intent to purchase smartphones during the holiday shopping season is up and interest in purchasing smartwatches is at a three-year high. Early October promotions stretch the season It is important for retailers and marketers to recognize the elongated holiday shopping season and the business opportunity that goes along with it. Receding COVID-19 concerns and increased social engagement, combined with rising prices and financial fears, could lead to additional spending disruptions as consumers manage climbing credit card debt. Emphasizing product availability and providing price assurance will help to spark earlier consumer engagement. Best Deals for Holiday % Among Total Respondents Q12b. Will you do any of your holiday shopping on the October Prime Day? Q12d. Thinking about the different times that you can shop for Holiday, during which of the following time periods do you feel you will get the best deals possible? Source: The NPD Group/Annual Holiday Survey *The NPD Group/Checkout Omnichannel Tracking “Pre-holiday promotions will jump-start the holiday shopping season and boost the lagging fall season,” Cohen said. “The weather has started to cool across much of the country, and consumers who became accustomed to almost unlimited spring and summer sales will be looking for fall and winter fashion deals. These promotions will get consumers thinking even earlier about their holiday shopping lists and how to save money, as the cost of living continues to rise.” Joe Derochowski, Home and Home Improvement Industry Advisor The large-scale retailer promotions in October give consumers more time for holiday shopping. Some will want to start early, motivated to save money by the mid-summer Prime Day-related sales and now by Prime Early Access and other large-scale promotions in mid-October. Because deal-oriented shoppers might start early, Black Friday and Cyber Monday sales could be adversely affected, but there are always consumers who shop the post-Thanksgiving sales because it’s become a traditional holiday activity. Like last year, we can expect lots of last-minute shopping, especially for high-quality products in the personal care category (e.g., massagers, electric toothbrushes, etc.). Although there might be fewer unit sales this year, higher prices mean sales revenue will likely track similarly or even higher than last year. Looking Backward to Navigate Forward Four-year Trend through December Weekly Dollar Volume Trend ($B) Week Ending January 12, 2019 – through Week Ending October 1, 2022 Source: The NPD Group/Point-of-sale first-read data, limited release. Discretionary retail includes the following industries: accessories, apparel, auto parts, beauty, consumer technology, DVD/Blu-ray, footwear, housewares, juvenile products, office supplies, small appliances, sports equipment, toys, video games. While many retailers and brands are looking at last year’s holiday season before placing their bets this year, 2019 might be a more fruitful comparison, shown by NPD’s Retail Early Indicator data. Even with stronger economic headwinds this year, the retail industry has settled into a more normalized spending cadence not seen since before the pandemic. Due to higher prices for retail goods, food, and fuel, holiday discretionary retail sales might not exceed the high peaks seen three years ago, but spending is still tracing a similar path over time. “We’ve noted consumers’ resilience ever since the pandemic began, and that it should not be underestimated,” Cohen said. “In fact, we’re expecting retail sales revenue growth of 1% to 2.5% over the elongated holiday season, compared to last year. Consumers might end up buying fewer products overall, but higher prices for the products they do buy will once again shore up retailers’ bottom lines.” #Holiday