CHICAGO — U.S. consumers are proving selective but willing spenders, prioritizing essentials and passion-driven purchases even amid economic uncertainty, elevated pricing, and tariff discussions, according to new data from Circana.
Retail sales revenue rose 1% in June 2025 compared to the same period last year, even as unit sales dipped nearly 1% across general merchandise, retail food and beverage, and non-edible CPG categories. Retail food and beverage stood out, notching a 2% increase in revenue with flat unit sales.
Industries such as video games, beauty, and toys experienced a noticeable surge, thanks to what Circana calls “passion purchases”—consumers opting to spend on items tied to new releases, collectibles, and personal indulgences.
“There are many vulnerable areas of retail, but in addition to maintaining their spending on food and other essentials in the current high-cost environment, consumers are prioritizing the purchase of products they are passionate about,” said Marshal Cohen, chief retail industry advisor for Circana. “The video games, beauty, and toys industries were a few who benefited from passion purchases related to new launches, collectibles, and personal splurges as consumers demonstrated that they are willing to pay more for a product if it is what they really want.”
Retailers also saw signs of consumers holding out for deals. Spending slowed in late June as shoppers awaited July promotions, resulting in a 9% increase in sales during the two weeks ending July 12. Prestige beauty, toys, and tech led the gains. Still, discretionary general merchandise revenue fell nearly 3% compared to last year’s July promotion period.
“Deals mean a lot to the consumer today, and they are willing to put off a purchase when they know deals are around the corner,” said Cohen. “Brands and retailers need to work harder to break through the deluge of uncertainty by making their product offerings a priority for the consumer, especially during the critical back-to-school and holiday shopping seasons that are fast approaching.”
Despite ongoing pressures, consumers remain engaged, signaling an opportunity for brands that strike a balance between necessity, emotion, and value, according to Circana.
