Chicago – Consumers are seeing some price increases at retail, though not as quickly or significantly as originally feared, creating less of an impact on spending behavior. Contributing to this phenomenon is the fact that the recall on discretionary purchases is not as strong as that of food purchases made more frequently.

Overall, U.S. retail sales revenue was up 2% across discretionary general merchandise, retail food and beverage, and non-edible consumer packaged goods (CPG) during the four weeks ending August 2, 2025 compared to the same time in 2024, while unit demand fell 1%.

• There was no change in discretionary general merchandise retail dollar sales, but unit demand was 2 percent lower than the same period a year ago.
• Retail food and beverage sales revenue was up 3 percent, and unit sales were flat.
• Non-edible CPG dollars were up 1 percent, while unit sales declined 2 percent.

“Consumers have demonstrated an acceptance of the relatively marginal price increases witnessed to date. They are picking and choosing what they spend on, which introduces some variability into more granular discretionary retail activity,” said Marshal Cohen, chief retail industry advisor for Circana. “Spending shifts that are occurring across categories and the consumer’s current prioritization hierarchy will bring more volatility to this year’s back-to-school and holiday shopping seasons.”