CHICAGO — Total retail spending remained steady again in December as consumers kept shopping. However, with ongoing price increases, they also indicated, through diminished demand, that they have spending limits. In the five-week period ending Jan. 3, 2026, U.S. retail sales revenue was unchanged across food, consumer packaged goods (CPG), and discretionary product segments, and unit demand fell by 1% during December compared to the same period in 2024.
Retail food and beverage sales revenue increased by 2%, while unit sales remained unchanged. Non-edible CPG dollars rose by 1%, while unit sales dropped by 3%. Discretionary general merchandise retail dollar sales fell by 2%, and unit demand decreased by 5% compared to the same period last year, according to Circana.
Overall, retail closed 2025 with 2% dollar growth and flat unit demand across all three segments. Price increases in retail food and beverage supported the segment’s 3% dollar growth, but consumption remained flat for the year. Discretionary general merchandise strayed the furthest from overall performance, with dollar growth of 0.5% and a 1.3% decline in unit sales.
“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 about their reasons for Black Friday and Cyber Monday shopping, and “bought on impulse” had the lowest share of responses, below 20% in most categories. The main reason for purchases during this busy holiday shopping time was self-gifting — especially in jewelry, books, fragrance, smart technology, and video games. Need was also a strong factor influencing Black Friday and Cyber Monday buys, and the top reason in some product categories.
The only way to grow this year is through innovation and impulse spending. Yes, convenience and accessibility are essential in today’s retail landscape, and highlighting need-benefits is important. But it’s that in-the-moment excitement from a message, demonstration, or product that truly drives additional spending. Historically, new product SKUs made up 5% of discretionary sales. Now, that number is only 2%, matching the peak levels seen during the pandemic. New products capture 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.”
