Consumers Are More Intentional on Spending Habits: Circana

When it comes to consumer purchasing habits, impulse buying is taking a backseat.

New insights from Circana reveal that US consumers are narrowing their purchase decisions, focusing on products they need or strongly desire and spending less on items that fall in between.

“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.”

Analysts say 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.

Meaningful Value

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. Analysts say shopping windows have “compressed,” making the timing of promotions and value-focused offerings more important than ever.

Analysts say demand remains challenged across most discretionary general merchandise categories. Year-to-date through Aug. 29, 2026, prestige beauty was among the only major discretionary categories to post unit growth versus last year. However, bright spots exist across retail demonstrating strong consumer interest, such as beauty products.

“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.”

Despite widespread spending pullbacks, analysts say 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.

Read up about the wellness trends that dominated 2026 here.