CHICAGO, Sept. 14, 2026 (GLOBE NEWSWIRE) — FOR IMMEDIATE RELEASE: 

As Spending Tightens, Consumers Choose What They Need and What They Love, Reports Circana

August retail sales rose 0.8%, but unit demand fell 1.7% as increasingly selective shoppers focused spending on purchases they deem truly worth it.

CHICAGO, September 14, 2026 — New insights from Circana reveal that U.S. consumers are narrowing their purchase decisions, focusing on products they need or strongly desire and spending less on items that fall in between. Overall retail spending increased 0.8% in August 2026 compared to the same period last year, while unit demand declined 1.7%, according to new data from Circana, LLC, signaling continued caution among shoppers.

“Consumers are sending a clear message: Value remains paramount, but value is no longer defined by price alone,” said Kiara Barrett, head of global thought leadership at Circana. “Brands and retailers that can deliver both affordability and meaningful benefits, whether through convenience, wellness, innovation, or enjoyment, are best positioned to win.”

Consumer Resilience Shows Signs of Strain

  • Retail food and beverage sales increased 0.2% during the four weeks ending August 29, while unit demand declined 1.8%.
  • Nonedible consumer packaged goods (CPG) dollar sales rose 1.5%, with units down 2.2%.
  • Discretionary general merchandise sales grew 1.4% in dollars, while unit demand remained flat year over year.

Consumers remain active in the marketplace but are increasingly deliberate about where and when they spend. More back-to-school shopping lagged into August, exacerbated by the shift in summer retail promotion week timing, and shifts in SNAP benefits are impacting retail food and beverage purchasing. Shopping windows have compressed, making the timing of promotions and value-focused offerings more important than ever.

Joy Continues to Drive Spending Decisions

Despite widespread spending pullbacks, consumers continue to make room in their budgets for purchases that provide enjoyment, convenience, wellness, and emotional value. A recent Circana consumer survey found that nearly 60% of shoppers are exercising greater caution or reducing discretionary spending, while 30% remain selective but continue spending in categories that matter most to them.

Demand remains challenged across most discretionary general merchandise categories. Year-to-date through August 29, toys and prestige beauty were the only major discretionary categories to post unit growth versus last year. However, there are bright spots across retail demonstrating strong consumer interest, such as frozen desserts, energy drinks, yoga and mat Pilates products, baking tools, beauty products, and trading cards. These categories are benefiting from consumers’ desire for affordable indulgences, personal wellbeing, entertainment, and connection.

“Consumers are redefining discretionary spending in such a way that successful brands will need to move beyond competing on price alone,” adds Barrett. “The opportunity lies in helping shoppers justify purchases through meaningful value, emotional benefits, innovation, and experiences that enhance everyday life.”

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About Circana 
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set, and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy.   


Janine Marshall
Circana
janine.marshall@circana.com

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