New Optimum Retailing data shows the importance of well-crafted in-store experiences as U.S. consumers navigate economic risks.
It’s an interesting time to be a shopper in America.
Fears over job security and pending tariffs are leading some consumers to tighten budgets and reduce spending. Others are celebrating recent promotions and making new big purchases. And then there are many shoppers whose spending habits fall somewhere in between.
Because that’s the reality for U.S. consumers right now — every day, and every person, feels a little bit different.
We see these diverse consumer perspectives reflected in recent government spending reports. While U.S. retail and food services sales dropped by nearly an estimated full percent in May, certain product categories are still seeing an overall increase in spend in 2025 compared to last year.
It all begs the questions: What’s really going on with shoppers in America today? And what do these trends mean for retail leaders?
To get to the bottom of these questions, our team surveyed 1,000 U.S. consumers on their spending habits and attitudes. In particular, we looked to uncover how American shoppers are approaching discretionary spending, as this category of non-essential purchases often faces greater scrutiny when there’s economic stress elsewhere.
Our top takeaway? For retailers looking to capture shoppers’ discretionary spending and protect their margins, it's time to rethink in-store experiences.
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What is discretionary spending? Discretionary spending (also known as “fun money” or “personal spending”) refers to non-essential purchases — things people choose to buy when they have extra money after covering their basic needs. This might include items like clothing, electronics, dining out, entertainment, home goods, snacks, and personal care products. |
New data from Optimum Retailing reflects consumers’ cautious optimism toward discretionary spending heading into the second half of 2025 — and how smarter in-store merchandising strategies can help retailers balance shopper pragmatism and impulsiveness more effectively.
Our insider insights help answer critical questions like:
Our research surfaces three foundational observations about U.S. shoppers’ attitudes toward discretionary spending — and how retailers can best respond to current behaviors.
What’s defining the psyche of American consumers today?
1. Some shoppers are pinching pennies, others are not
Consumers are relatively split on cutting back. Nearly equal numbers of shoppers expect to spend less on discretionary purchases (34%) over the next six months as those who expect to spend more (30%).
There’s a rift among shoppers over budget adherence for discretionary purchases — which 96% of respondents do include in their budget.
While the majority of shoppers (67%) say they do a good job of sticking to their budget for these types of non-essential purchases, just 21% never make more discretionary purchases than their budget allows for. Nearly a third of respondents say sticking to their budget for discretionary purchases is hit or miss or something they don’t do very well at all.
Even with budgets in place, impulse buying is common. More than 7 in 10 respondents (72%) have made an unplanned in-store discretionary purchase within the past month — and 38% within the past week.
How well consumers stick to their budget for discretionary purchases:
Although in-store shopping remains a regular part of consumers’ routines in 2025, the experience has grown more complicated.
While it’s encouraging to see only 5% of respondents say they hate in-store shopping, that doesn’t mean retailers have everything figured out. Consumers will still shop in store, but 63% expressed an increase in stress toward the experience — a clear point of friction retail leaders must counteract.
How consumers feel about in-store shopping right now:
The psyche of American shoppers today is a mixed bag, and that’s unlikely to change soon. The average U.S. consumer is navigating a world fueled by both fear and indulgence — where saving for the future can feel extremely important one day, and spending on extras to help manage stress or chaos can feel just as important the next.
This means retailers must be prepared to engage consumers with varied purchasing behaviors, especially in store.
Let’s take a closer look at what our data findings indicate as top strategies for retailers moving forward:
A number of elements influence unplanned discretionary purchases while shopping in store. At the top of the list are limited-time sales/promotions and attention-catching product displays.
Likewise, where products are placed throughout a store has a big impact — instant access to products and products being located near items shoppers already buy ranked in the Top 5 factors that influence shoppers to make unplanned discretionary purchases while shopping in store.
Our data also shows a range of other opportunities for retailers to drive more meaningful in-store experiences for shoppers. Merchandising elements like clear signage and shelf pricing (No. 6), in-stock inventory (No. 8 [tied]), and product selections tailored by both trending products (No. 8 [tied]) and store location (No. 9) all contribute to the overall effectiveness of in-store shopping experiences — and consumers’ purchasing intent.
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Technology spotlight: Realgram AI AI-powered planogramming allows retailers to optimize many aspects of the in-store shopping experience at once. With Realgram AI, you can access data-driven merchandising strategies that are customized at the store level, based on real-time inventory management insights, and aligned with your business objectives. Learn more here. |
Just as there are aspects of the in-store shopping experience that drive consumers toward purchase, there are clear barriers present in our findings, too.
The No. 1 factor that most often stops respondents from making an unplanned non-essential purchase in store? Guilt.
While retailers may not be able to reduce shoppers’ guilty feelings directly, there are steps headquarters and store teams can take to craft in-store shopping experiences with this consumer headspace in mind.
For example, store layout and product availability ranked as top factors that deter purchases. Retailers can improve both of these aspects, whether that’s through refining product fixture layout storewide based on heatmapping shopper movement data or using AI-powered planogramming tools to ensure merchandising strategies align with real-time inventory availability at the store level.
Difficulty comparing in-store and online prices while shopping in store is another major deterrent (No. 6), pointing to an additional aspect of the in-store shopping experience retailers can improve for consumers.
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Technology spotlight: Immersive Store Planner (ISP) Determining what turns shoppers away may require a bit of testing. An ISP creates digital twins of stores using VR, 2D, and 3D models to simulate layouts, test scenarios, and optimize merchandising strategies. This means you can test different store layouts and correct for factors that may discourage purchases or harm shopper experiences — all without disrupting real-world operations. Plus, you can complete this A/B testing process across a small selection of stores first, then roll out plans more broadly, reducing risk. Book a demo to see this in action. |
As to be expected, U.S. shoppers are more likely to reduce discretionary spending on some products over others. Respondents ranked dining out/takeout, clothing/accessories, and electronics/gadgets as the Top 3 discretionary product categories they’re most likely to reduce spending on over the next six months.
What’s more, less than half of shoppers (49%) are making non-essential in-store purchases for clothing/accessories monthly or more frequently, and even fewer are making them for electronics/gadgets (23%).
These findings indicate greater urgency for retailers in these verticals to improve in-store merchandising strategies. As shoppers look to pull back in these categories specifically, retail technology can help companies meet shoppers where they are — and with the right information and experiences to drive loyalty, and ultimately sales.
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Technology spotlight: Precision merchandising To stay aligned with shopping trends across product categories, retailers must plan and allocate with greater precision. This process centers around performance-driven decision-making at the zone, fixture, and store levels — and it starts with insight into why products are or aren’t selling. Making your in-store data more accessible is critical to optimizing in-store shopping experiences. Learn more here. |
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A spotlight on grocery Interestingly, grocery items beyond the basics — a product category often under a microscope during times of economic stress — ranked second to last out of the eight product categories shoppers were asked to rank in terms of their likelihood of reducing discretionary spending for over the next six months. Supporting this trend, 91% of shoppers are still making non-essential in-store grocery purchases monthly or more frequently right now, much higher shares than for clothing/accessories or electronics/gadgets. The takeaway for retailers is that what shoppers say and what shoppers do can be two very different things, especially when financial uncertainty is in play. Even when consumers say they’re pulling back on spend, that mindset won’t apply to every product category. Grocery retailers should prioritize merchandising strategies that can still accommodate potential discretionary purchases — consumers who are demonstrating saving tendencies in one moment may shop with their stomachs in another. |
Consumer confidence may be mixed right now, but one thing remains clear: When it comes to capturing discretionary spend, physical retail matters.
However, it’s no longer enough to simply have a brick-and-mortar presence. In-store shopping experiences must be responsive, creative, data-driven, and aligned with real-time shopper needs and desires.
Because in today’s uncertain economy, the path to profitability starts with smarter in-store decision-making. That’s why our team at Optimum Retailing is proud to offer retailers the tools required to meet this moment and turn strategy into profitability, every day, in every store.
Ready to evolve your in-store merchandising strategies? Contact our team to learn more.
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In June 2025, Optimum Retailing surveyed 1,000 U.S. consumers who had made both online and in-store purchases in the last 12 months. At the time of the survey, all respondents were 18 years or older and had made discretionary purchases. Due to rounding, not all charts may add up to 100%.
Many factors influence the types of discretionary purchases American consumers are making today, as well as how often they’re making them. For instance, a shopper’s planned budget has an impact, as does product category. The quality and effectiveness of in-store shopping experiences also plays a key role — sales/promotions, attention-catching product displays, and instant access to trending and tailored products all positively impact shopper decision-making.
In the consumer world, discretionary spending (also known as “fun money” or “personal spending”) refers to non-essential purchases — things people choose to buy when they have extra money after covering their basic needs. This might include items like clothing, electronics, dining out, entertainment, home goods, snacks, and personal care products. This compares to non-discretionary spending, or essential purchases people must make to maintain a basic standard of living, or even survive (e.g., basic groceries and toiletries, rent, utilities, essential clothing, healthcare, etc.).
The right next step is to invest in smarter merchandising strategies powered by AI technology. This way, no matter how consumer spending habits continue to change, retailers are prepared with responsive, agile, and intelligent tools that help ensure smarter retail execution at the store level. This type of positive in-store experience is critical for retailer leaders across verticals, as in-store shopping continues to play an important role in both consumer behavior and company growth.