Market research and analytics company Circana reported that total retail spending held steady in December, while 2025 closed with 2% overall retail dollar growth for the year, on flat unit demand, with discretionary categories lagging on both counts.
In the combined five weeks ending January 3, retail sales revenue in the United States was flat across food, consumer packaged goods and discretionary product segments, as unit demand declined 1% versus the comparable period 12 months earlier, according to Circana. Retail food and beverage sales revenue gained 2%, with flat unit sales. Non-edible CPG dollars were up 1%, although unit sales declined 3%. Discretionary general merchandise retail dollar sales declined 2% in December as unit demand slid 5% compared to the same period a year prior, Circana stated.
Retail ended 2025 with 2% dollar growth and flat unit demand across all three segments. Price elevation in retail food and beverage supported the segment’s 3% dollar growth, but consumption was flat for the year, Circana noted. Discretionary general merchandise strayed furthest from overall performance, with dollar growth of 0.5% but a unit sales decline of 1.3%.
As part of its research, Circana asked consumers the reasons behind their Black Friday and Cyber Monday purchasing, and “bought on impulse” had the lowest share of responses, falling under 20% for most categories. The top consideration prompting purchasing on the occasions was self-gifting, strongest in jewelry, books, fragrance, smart technology and video games. Need was also a strong motivator in Black Friday and Cyber Monday purchasing, and it was the top reason for some product segments, according to Circana.
Circana asserted that newness-driven impulse spending is critical to growth in 2026. Convenience and accessibility are must-haves in the current retail environment, and need/benefit concerns are important, the market analytics company added. Still, the in-the-moment excitement that can come from a message, a demonstration or a product stimulates additional spending, Circana noted. New product SKUs historically account for 5% of discretionary sales, the market researcher added, but recently generated just 2%, in line with the peak levels during the pandemic, Circana added.
“Consumers continue to spend what they can, but price elevation is curtailing purchases,” said Marshal Cohen, Circana chief retail industry advisor. “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. Impulse purchases are a result of in-the-moment excitement, and a critical piece of the retail growth equation that is lacking right now. 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.”
