What: New data from the 2025 CNBC/NRF Retail Monitor shows consumers prioritized essentials and dining experiences, becoming more selective in discretionary spending throughout the year.

Why it is important: This shift highlights how value, relevance, and experiences are driving retail growth, aligning with recent analyses of evolving consumer priorities.

The 2025 CNBC/NRF Retail Monitor reveals that consumer spending remained resilient but increasingly intentional, with shoppers focusing on essentials and dining experiences while pulling back on big-ticket and home-related purchases. Throughout the year, discretionary spending became more targeted, with dining and social outings emerging as preferred outlets for modest, meaningful expenditures. The holiday quarter saw steady engagement, though growth was more measured, reflecting a consumer base that continued to participate in seasonal moments but moderated non-essential purchases in response to inflation and tariffs. Middle-income households drove much of the quarter’s growth, especially in Food Services & Drinking Places, while Gen Z posted the strongest gains in experiential categories. Older shoppers remained cautious, concentrating on necessities. Across both the fourth quarter and the full year, the data underscores a landscape shaped by selectivity and value-driven choices, with essentials and experiences outperforming other categories and providing a stable foundation for retail growth.

IADS Notes: Consumer spending patterns in 2025 reveal a marked shift toward intentionality, value, and experiences, as documented by multiple sources. WWD (May 2025) highlights how Gen Z and Millennials are redefining necessities, prioritizing lifestyle experiences and digital services even amid economic uncertainty, with over half of young consumers preferring to reduce savings rather than forgo experiences. Alix Partners (December 2025) reports that ongoing economic uncertainty is driving consumers globally to become more cautious and value-focused, prompting retailers to adopt leaner inventory models and operational efficiency. PwC (September 2025) notes that the 2025 holiday season saw overall spending decline for the first time since 2020, with Gen Z cutting back sharply while older generations maintained or increased their budgets, and value-driven choices and meaningful experiences—especially in food and travel—shaping the season. The Financial Times (October 2025) describes the rise of the eat-at-home economy, with consumers opting for high-quality ready meals and food delivery over traditional restaurant visits, leading supermarkets and restaurants to adapt with premium at-home offerings. The Economist (December 2025) underscores that, despite low consumer sentiment, US retail spending remained robust, with essentials and small luxuries outperforming, and higher-income shoppers fueling luxury growth while value-driven retailers thrived among budget-conscious consumers.

What last year’s U.S. retail receipts say about the year ahead