Consumers spending more cautiously

U.S. shoppers spent more in March, but the gains are getting narrower as households hunt for lower prices and buy more selectively. (circana.com) Circana said March retail sales rose 3.3% from a year earlier, with unit demand up 1% across discretionary general merchandise, food and beverage, and nonedible consumer packaged goods. The firm said calendar shifts, including a later Easter and warmer weather, helped lift early-spring results. (circana.com) Underneath that headline, Circana said lower-income consumers remain under the most strain, and spending growth led by higher-income households has slowed since late 2025. Marshal Cohen, Circana’s chief retail industry adviser, said “topline numbers appear healthy, but appearances can be misleading.” (wwd.com) Bank of America Institute found secondhand fashion transactions per household grew nine times faster than secondhand spending in March, a sign that shoppers are making more resale purchases but spending less each time. It said average spend per secondhand purchase has been falling across income groups since April 2025. (bankofamerica.com) AOL, citing that Bank of America report, said the number of the bank’s customers selling secondhand clothing rose 16% in March from a year earlier. Gen Z accounted for 41% of secondhand sellers this year, up from 37% in 2024. (aol.com) The broader retail data show consumers are still spending, but often in ways that mask pressure from gas prices and other household costs. Circana said those pressures can show up with a lag, which makes one strong month a weak guide to what comes next. (circana.com) Other March readings were also solid, though they measured retail differently. The National Retail Federation’s Retail Monitor said core retail sales rose 0.41% from February and 7.05% from a year earlier, while the Commerce Department said overall retail sales rose 1.7% month over month on April 21, the fastest pace since January 2023. (nrf.com; northjersey.com) For apparel and other discretionary sellers, the shift is showing up in where growth is landing. Bank of America said most secondhand growth is concentrated in luxury fashion and discount apparel, while department stores continue to lose share. (bankofamerica.com) Circana said retailers now need simpler pricing, clearer value, and less friction in the shopping trip as consumers compare purchases more carefully. The spring spending bump was real, but the customer behind it is acting more cautious than the headline suggests. (wwd.com)