Younger consumers continue to reshape spending habits
CHICAGO, May 26, 2026 — Retail performance softened in April, as challenging year-over-year comparisons and sustained economic pressures weighed heavily on consumer demand. Overall retail spending declined 1.6% compared to April 2025, while unit demand fell 4.7%, reflecting a cautious consumer environment across multiple sectors, according to Circana, LLC. The decline was driven in part by calendar-related distortions. The Easter holiday shifted into March this year, creating an unfavorable comparison for April results. Additionally, elevated pricing in key categories last year — particularly eggs during the height of avian flu disruptions — further complicated year-over-year performance metrics.
During the four weeks ending May 2, 2026, Circana reports notable declines in key retail sectors. Retail food and beverage dollar sales decreased 1.7%, with a 4% drop in unit sales. Non-edible consumer packaged goods (CPG) revenue dipped 0.7%, while unit demand was down 5.8%. Discretionary general merchandise sales revenue fell 2.1%, with a 10.9% drop in units.
“Current retail results are clouded. April may have been short on growth, but it is important to note that year-to-date retail results reflect minor growth, underscoring the importance of looking past a singular view,” said Marshal Cohen, chief retail industry advisor for Circana. “Inconsistent year-over-year comparisons combined with mounting macroeconomic pressures on household budgets from rising prices across retail, and now at the pumps, are creating an incomplete top-line picture of retail sales — particularly in discretionary spending.”
Challenging comparisons in some areas are further fueling negative results, but softer comps among select consumer segments are helping to prevent steeper declines. Since early 2025, younger consumers have faced mounting financial pressures, including rising living costs, a moderating job market, increasing credit card debt, and the resumption of student loan repayments. These factors have led to sustained declines in spending among younger consumers — even compared to already soft performance a year ago — creating ripple effects throughout retail.
As a result of the challenges faced by younger consumers, notable lifestyle shifts are emerging. Increased focus on cooking and entertaining at home, and growth in do-it-yourself solutions, including auto maintenance, echo behavior patterns seen during the pandemic, signaling a longer-term reset in how younger households allocate spending.
While older, more financially stable consumers remain a key source of growth, their spending is not unlimited. The consumer base is becoming increasingly fragmented. Different demographic groups are reacting to economic conditions in distinct ways, resulting in varied spending patterns and priorities.
“There is no longer a one-size-fits-all consumer,” added Cohen. “Retailers must tailor their approach across multiple dimensions to effectively meet evolving needs of a variety of consumer groups. As the impact of softer year-ago comparisons fades, retail success will depend on the ability to adapt quickly to shifting behaviors and deliver value through diversified offerings and targeted engagement strategies.”
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.
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Janine Marshall
