New survey highlights shift away from promotions.

 

Circana’s research shows that spending growth is being driven less by promotional events and more by shoppers making deliberate purchases based on need, a trend that is shaping the US back-to-school season and could influence future holiday shopping.

 

“Consumers are still spending, but they are increasingly doing so through prioritisation rather than expansion; driven by purpose rather than promotions,” Circana’s Kiara Barrett said. “Promotional activity remains important, but broad discounts alone are generating less incremental demand.”

 

Circana data shows that consumers continue to carefully prioritize discretionary purchases. Lower-income consumers are still pulling back on these categories. 

 

Growth is more concentrated among higher-income households and a narrowing set of categories, particularly those that deliver clear value, convenience, health benefits or affordable enjoyment

 

Circana anticipates that the traditional US back-to-school shopping season will be moderate at best: low on unit demand, with higher spending driven by pricing. Consumers will be more focused on the core elements, making deeper purchases as the needs arise even well beyond the first days of school, with even the highest-income groups exhibiting some caution.