U.S. consumer spending stabilized following January’s weather‑driven volatility, with overall retail sales revenue rising 1.3% on a 1% unit decline in February compared to the same period last year, Circana reported.
While severe storms impacted over 240 million Americans in late January and a historic blizzard disrupted the Northeast in late February, these effects were temporary and isolated, according to the market research and analytics company. The broader trajectory of retail performance remained intact because of the consumer’s prevailing desires, Circana noted.
“Despite headwinds from winter storms and ongoing global uncertainties, U.S. consumers continue to demonstrate their resilience — particularly within categories driven by desire rather than necessity,” said Marshal Cohen, chief retail industry advisor for Circana. “There is a growing divide between industries where consumers feel value aligns with pricing and those where elevated costs are dampening demand.”
During the combined four weeks ending February 28, 2026, macro retail trends across retail food and beverage, non-edible consumer packaged goods (CPG) and discretionary general merchandise show a return to generally steadier spending patterns, though demand is still being challenged by elevated prices, Circana reported. Retail food and beverage sales increased 1.4%, with units down just 0.6%. Non-edible CPG dollar sales rose 1.6%, while unit sales declined 2.3%. Discretionary general merchandise experienced 0.9% dollar growth, though unit demand fell 3% year over year.
Segments including prestige beauty and toys continue to see rising demand despite higher prices, according to Circana. However, segments such as home durables and apparel see slower purchasing as consumers opt to hold off when value perception is lacking. Demand within food and CPG is also being driven by more than need, with lifestyle and innovation contributing to positive performance alongside average price increases in beverage and beauty segments, among others, Circana concluded.
“Consumers have yet to pull back on overall spending in a significant way — even as potential reasons have been aplenty — but current world events could bring some disruption to their willingness to spend,” Cohen said. “But the key to capturing the consumer’s attention amid any distraction is ensuring that they feel newness, excitement, or meaningful value when considering a purchase.”
