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Shopping: Households shop with nearly 40 retailers annually

Why Is This Topic Trending?

  • Economic Uncertainty: Inflation, tariffs, and recession worries are causing shoppers to diversify their retailer selection to optimize their budgets.

  • Growth of Omnichannel Shopping: Households are now shopping across an average of 39 unique retailers yearly, underscoring the importance of multi-channel retail.

  • Everyday Indulgences: Despite tightening budgets, consumers still prioritize small, luxury indulgences such as gourmet coffee and premium beauty products.

  • Selective Shopping Habits: Consumers are making more frequent shopping trips but purchasing fewer categories per trip, demonstrating more careful, considered spending.

  • Rise in Value and Premium Channels: Low-income households increasingly shop at dollar and value stores, while high-income households gravitate towards club stores and online shopping, reflecting a polarized shopping landscape.

Overview

Circana's latest study highlights shifting consumer shopping patterns amid economic uncertainty. The average U.S. household now engages with nearly 40 retailers annually, reflecting diversified and selective spending habits. Omnichannel shoppers significantly outspend single-channel shoppers, emphasizing the growing importance of integrated retail experiences. Additionally, consumers are balancing budget constraints with small indulgent purchases, redefining luxury and value in their everyday lives.

Detailed Findings

  • Wide Retailer Engagement: The average household shops at 39 unique retailers per year, demonstrating an increasingly fragmented and selective retail landscape.

  • Omnichannel Dominance: Shoppers using both online and offline channels spend almost double compared to those who use only one channel.

  • Everyday Luxury Growth: Consumers continue to prioritize small indulgences such as gourmet coffee, premium candles, and high-end beauty products, despite financial pressures.

  • Income-Driven Retail Choices: Low-income households are shifting towards dollar and value stores, while high-income households focus more on club stores and e-commerce, reinforcing polarized shopping habits.

  • Selective Spending: Consumers are shopping more frequently but limiting the variety of products per trip, indicating heightened selectivity and cautious spending.

  • Convenience Food Expansion: Convenience-driven meal solutions (such as air fryer-friendly meals) continue to rise in popularity, particularly during lunch and dinner.

  • Beverage Snacking Growth: Beverage-only snack occasions are growing rapidly, driven by energy and nutritional drinks, and sales of portable beverageware are experiencing sustained double-digit growth.

Key Takeaway

Consumers, facing economic pressures, strategically balance spending across multiple retail channels, prioritizing selective, indulgent, and convenience-driven purchases.

Main Trend: "Strategic Selective Spending"

Consumers are carefully navigating economic uncertainty by diversifying retail choices, balancing affordability with targeted luxury spending, and prioritizing convenience in their everyday lives.

Consumer Motivation

  • Budget Management: Consumers seek ways to optimize spending by balancing affordability with quality.

  • Emotional Comfort: Small luxuries provide emotional satisfaction amid financial pressures.

  • Convenience and Efficiency: Increased reliance on convenient meal solutions and portable options reflects busy, multitasking lifestyles.

  • Selective Satisfaction: Consumers choose fewer categories per shopping trip, aiming for maximum value and satisfaction.

What Is Driving the Trend?

  • Inflation and Tariffs: Economic instability and rising costs prompt consumers to spread spending across value and premium channels strategically.

  • Omnichannel Accessibility: Greater availability of multiple shopping channels makes diversification both feasible and attractive.

  • Cultural Shift to Small Luxuries: Consumers increasingly perceive small indulgences as acceptable and necessary comforts.

  • Rise of Convenience Culture: Busy lifestyles and changing meal habits fuel demand for convenience-oriented products and solutions.

Motivation Beyond the Trend

  • Desire for Control: Diversifying shopping habits allows consumers to feel greater control over finances and lifestyle.

  • Maintaining Quality of Life: Small luxuries and convenience products help preserve a sense of normalcy and enjoyment.

  • Adapting to New Norms: Economic pressures reshape shopping behavior into sustainable long-term habits rather than temporary solutions.

Description of Consumers

  • Age: Primarily Millennials, Gen X, and Boomers driving diversified shopping trends, with younger consumers leaning into omnichannel options.

  • Gender: Broadly gender-neutral, though luxury indulgences in beauty may skew slightly female.

  • Income: Polarized shopping patterns span all income levels—low-income shoppers favor value stores, high-income shoppers favor clubs and online.

  • Lifestyle: Busy, convenience-oriented, economically conscious consumers who strategically balance indulgences and essentials.

Conclusions

Consumer shopping behaviors are evolving rapidly amid ongoing economic uncertainty. Diversification across retail channels is now standard practice, driven by strategic selectivity, indulgence, and convenience. Brands and retailers must align offerings with these nuanced consumer needs to foster loyalty and sustained growth.

Implications for Brands

  • Prioritize affordable luxury and indulgent, yet accessible, product lines.

  • Enhance omnichannel presence to capture higher spending from diverse shopper segments.

  • Develop convenience-driven products to match evolving meal and snacking habits.

  • Segment and target specific retail channels clearly based on consumer income groups.

Implications for Society

  • Increased economic polarization may reinforce retail divides between premium and value-focused shopping.

  • Shifts towards small indulgences highlight societal value placed on everyday mental and emotional well-being.

  • Broader societal acceptance of diversified shopping habits reflects adaptation to long-term economic realities.

Implications for Consumers

  • Greater control and flexibility in managing budgets and shopping habits.

  • More opportunities for everyday enjoyment through accessible luxury.

  • Increased expectations for convenience-driven product innovations that support busy lifestyles.

Implication for Future

Strategic selective spending behaviors will likely solidify, shaping retail landscapes and consumer expectations long-term. Retailers and brands that effectively cater to these nuanced purchasing patterns—offering balanced value, luxury, and convenience—will thrive.

Consumer Trend: "Everyday Affordable Indulgence"

Consumers increasingly seek accessible luxury experiences, purchasing small yet emotionally rewarding items (premium beverages, prestige beauty, gourmet snacks) that offer affordable indulgence amid economic pressure.

Consumer Sub Trend: "Omnichannel Optimization"

Consumers strategically leverage both online and offline retail channels to maximize value, convenience, and satisfaction in their shopping routines.

Big Social Trend: "Selective Consumerism"

Society increasingly embraces purposeful, selective shopping behavior, carefully balancing essential spending with targeted indulgences.

Worldwide Social Trend: "Polarized Retail Economy"

Globally, consumer spending is becoming more segmented, with clear divides emerging between value-oriented shoppers and those prioritizing premium convenience and luxury.

Social Drive: "Empowered Economic Choice"

Consumers are exercising their purchasing power more consciously and deliberately, shaping markets through intentional, diversified spending habits.

Learnings for Brands to Use in 2025

  • Offer targeted indulgences: Affordable luxury products that deliver emotional value will resonate strongly.

  • Invest in omnichannel strategies: Seamless integration of online and offline shopping experiences will capture greater consumer spend.

  • Prioritize convenience-driven innovations: Products designed to simplify meal preparation or enhance portability are crucial.

  • Clearly segment consumer markets: Tailor strategies based on distinct income-driven shopping behaviors, aligning products to consumer financial contexts.

Strategy Recommendations for Brands to Follow in 2025

  • Leverage targeted product assortments: Clearly position affordable indulgence and convenience items across specific retail channels.

  • Create integrated omnichannel experiences: Ensure brand consistency, ease of access, and simplified transactions online and in-store.

  • Engage consumers emotionally: Develop storytelling around everyday indulgences, highlighting emotional and practical benefits.

  • Innovate for convenience: Invest in ready-to-eat, easy-to-prepare, or portable products to align with busy, selective consumer lifestyles.

Final Sentence (Key Concept)

Strategic selective spending, defined by diversified retail engagement, everyday affordable indulgences, and omnichannel optimization, is shaping the consumer landscape amidst economic uncertainty.

What Brands & Companies Should Do in 2025

Brands should proactively align products and services with consumer preferences for affordable luxury, convenience, and channel diversity. To benefit from this trend:

  • Focus product innovation around affordability and indulgence.

  • Optimize omnichannel strategies to enhance consumer engagement.

  • Segment consumers clearly, understanding income-driven retail behaviors.

  • Communicate practical, emotional, and lifestyle benefits clearly in marketing.

Final Note:

  • Core Trend:

    • Strategic Selective Spending: Consumers diversify retail channels, carefully balancing value, indulgence, and convenience to optimize financial and emotional satisfaction.

  • Core Strategy:

    • Omnichannel Integration: Seamlessly combine digital and physical retail experiences to capture maximum consumer spend.

  • Core Industry Trend:

    • Affordable Indulgence: The industry must innovate accessible luxury products to satisfy consumer desire for emotional reward amid financial pressures.

  • Core Consumer Motivation:

    • Balanced Emotional Value: Consumers seek affordable, everyday indulgences that provide comfort and maintain a sense of normalcy amid economic challenges.

  • Final Conclusion:

    • Brands and retailers that successfully cater to consumers’ strategic selective spending behaviors—balancing affordability, convenience, and indulgence—will position themselves for sustained relevance and growth in 2025 and beyond.

Core Trend Detailed: Strategic Selective Spending

Description

Strategic Selective Spending describes consumers’ increasingly deliberate and diversified shopping behaviors, driven by persistent economic uncertainty. Households strategically spread purchases across numerous retailers—both online and offline—to balance essential spending with affordable luxuries and convenient solutions. This approach allows consumers to maximize personal satisfaction, maintain quality of life, and manage budgets efficiently amidst financial pressures such as inflation, recession concerns, and rising tariffs.

Key Characteristics of the Trend (Summary)

  • Diversified Retail Engagement: Households shop at approximately 39 different retailers annually, demonstrating intentional fragmentation in purchasing behavior.

  • Everyday Affordable Indulgences: Consumers prioritize small luxury items (e.g., gourmet coffee, premium beauty products) to maintain emotional well-being during economic stress.

  • Omnichannel Optimization: Shoppers who blend digital and physical retail experiences significantly outspend single-channel consumers, reflecting the importance of integrated shopping.

  • Income-Driven Retail Polarization: Spending patterns are increasingly segmented, with low-income households favoring value-oriented stores and high-income households gravitating toward premium retailers and e-commerce.

  • Convenience-Oriented Choices: Growing demand for easy meal solutions and portable products reflects shifting lifestyles and priorities toward practicality and time-efficiency.

Market and Cultural Signals Supporting the Trend (Summary)

  • Increasing Omnichannel Spending: Circana research indicates omnichannel shoppers spend nearly twice as much as single-channel shoppers.

  • Economic Pressures: Concerns around inflation, tariffs, and possible recession are driving consumers to become more selective and strategic in their spending.

  • Rising Popularity of Small Luxuries: Continued growth in sales of products like gourmet coffee, premium candles, and beauty products emphasizes consumer desire for everyday indulgences despite financial pressures.

  • Value-Retail Growth: Increased visits to dollar and discount stores among lower-income households signal economic caution and strategic spending shifts.

  • Growing Convenience Market: Rapid growth in categories such as air fryer-friendly foods, portable beverages, and energy drinks indicates consumer demand for efficiency and practical solutions.

How the Trend Is Changing Consumer Behavior (Summary)

  • Heightened Selectivity: Consumers shop more frequently but purchase fewer product categories per trip, aiming for precise satisfaction rather than bulk purchasing.

  • Expanded Retail Horizons: Households are spreading their spending across more retailers to seek out optimal combinations of value, convenience, and indulgence.

  • Preference for Practicality and Portability: Convenience-oriented products like ready-to-eat meals, portable beverages, and multifunctional household items have seen significant adoption.

  • Rebalanced Luxury Expectations: Consumers redefine luxury by focusing on small, accessible premium items instead of large, expensive indulgences.

  • Intentional Omnichannel Shopping: More consumers strategically leverage both digital and physical retail channels to enhance shopping efficiency, savings, and satisfaction.

Implications Across the Ecosystem

For Brands and CPGs:

  • Necessity for Diverse Channel Presence: Brands must effectively integrate online and offline strategies to capture omnichannel spending.

  • Affordable Luxury Focus: Product innovation should emphasize affordable indulgences to align with consumer desires for emotional comfort amid economic uncertainty.

  • Convenience Innovation: Products designed to simplify meal preparation or daily routines will resonate strongly with consumers facing time and budget constraints.

For Retailers:

  • Channel-Specific Strategies: Retailers need to clearly target and segment their offerings to appeal to distinct income-driven shopper groups.

  • Increased Stocking of Value and Convenience Items: Retailers will need to expand assortments of convenient, practical, and indulgent products to match consumer demand.

  • Enhanced Omnichannel Experiences: Providing seamless shopping experiences across physical and digital environments will be crucial in attracting high-value omnichannel shoppers.

For Consumers:

  • Greater Control Over Budgets: Diversified shopping enables consumers to effectively manage spending, prioritizing both essential items and emotionally fulfilling products.

  • Improved Quality of Life: Strategic selective spending allows for maintaining comfort and lifestyle quality despite financial pressures.

  • Enhanced Shopping Efficiency: Consumers benefit from streamlined, purposeful shopping behaviors and improved access to desirable products across multiple channels.

Strategic Forecast

Moving forward, Strategic Selective Spending is expected to become a permanent consumer behavior, strongly influencing retail strategy and brand positioning. Companies able to understand and adapt to this nuanced trend—focusing on affordability, convenience, and emotional reward—will achieve stronger consumer loyalty and sustained growth. Omnichannel capabilities will be essential, while continued product innovation in convenience-driven categories and affordable luxury segments will further drive market opportunities.

Final Thought

Strategic Selective Spending represents a lasting shift in consumer behavior, requiring brands and retailers to deliver targeted value, convenience, and emotional satisfaction. Companies successfully aligning with this consumer reality will secure relevance and long-term success in the evolving economic landscape.

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