- Marshal Cohen
- Jan 16
- 3 min read
Consumers continue to spend, but reduced demand conveyed clear thresholds even through the holiday shopping season.
CHICAGO, Jan. 16, 2026 — Total retail spending held steady once again in December as consumers continued to spend. However, amid persistent price elevation, they also made it clear, through reduced demand, that they have spending limitations. In the combined five weeks ending Jan. 3, 2026, U.S. retail sales revenue was flat across food, consumer packaged goods (CPG), and discretionary product segments, and unit demand declined 1% during the five weeks of December compared to the same time in 2024. Retail food and beverage sales revenue was up 2%, with flat unit sales. Non-edible CPG dollars were up 1%, while unit sales declined 3%. Discretionary general merchandise retail dollar sales declined 2%, and unit demand fell 5% compared to the same period a year ago, according to Circana, LLC.
Overall, retail closed 2025 with 2% dollar growth and flat unit demand across all three segments.Price elevation in retail food and beverage supported the segment’s 3% dollar growth, but consumption was flat for the year. Discretionary general merchandise strayed furthest from overall performance, with dollar growth of 0.5% and unit sales decline of 1.3%.
“Consumers continue to spend what they can, but price elevation is curtailing purchases,” said Marshal Cohen, chief retail industry advisor for Circana. “Purchasing shortfalls demonstrate the consumer’s current lack of enthusiasm, and when that is evident even during the busiest shopping periods, it should spark concern and change at retail.”
Circana asked consumers the reason behind their Black Friday and Cyber Monday purchases, and “bought on impulse” had the lowest share of responses, falling under 20% for most categories. The top reason behind purchases during this peak holiday shopping period was self-gifting — strongest in jewelry, books, fragrance, smart technology, and video games. Need was also a strong influencer behind Black Friday and Cyber Monday purchases, and was the top reason for some product categories.
The only path to growth this year is newness and impulse spending. Yes, convenience and accessibility are must-haves in today’s retail environment, and need-benefits should be emphasized. But that in-the-moment excitement that can come from a message, a demonstration, or a product is what stimulates additional spending. Historically, new product SKUs accounted for 5% of discretionary sales. Currently, that number is just 2%, same as the peak levels during the pandemic. New products get the consumer’s attention.
“Impulse purchases are a result of in-the-moment excitement, and a critical piece of the retail growth equation that is lacking right now,” said Cohen. “But there are still opportunities to engage the consumer if marketers elevate their focus on the biggest impulse driver — newness. New messaging, new product, new approaches are the only way to reignite the consumer’s enthusiasm and the only path for growth.”
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.
Contact:
Janine Marshall
