December Retail Sales Confirm 2025 Spending Plateau, Circana Says

December retail sales data is offering marketers and retailers a clear signal about consumer behavior heading into 2026. New findings from Circana show that while shoppers continue to spend, elevated prices are limiting how much they are willing or able to buy. For the MarTech and retail ecosystem, the results reinforce the need for sharper messaging, stronger product differentiation, and renewed focus on demand creation.

According to Circana, December retail sales revenue remained flat across food, consumer packaged goods, and discretionary product segments during the combined five week period ending January 3, 2026. Unit demand declined by 1 percent compared to the same period in 2024, indicating that consumers are pulling back even as total spending holds steady. Retail food and beverage sales rose 2 percent in dollar terms, but unit sales were flat. Non edible consumer packaged goods saw a 1 percent increase in dollars while unit demand fell 3 percent. Discretionary general merchandise experienced the sharpest pullback, with dollar sales down 2 percent and unit demand declining 5 percent year over year.

December retail sales trends capped a year defined by constrained growth. Overall, retail closed 2025 with 2 percent dollar growth and flat unit demand across all major segments. Food and beverage benefited most from price increases, delivering 3 percent dollar growth despite flat consumption. Discretionary general merchandise lagged the broader market, posting only 0.5 percent dollar growth alongside a 1.3 percent decline in unit sales.

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“Consumers continue to spend what they can, but price elevation is curtailing purchases,” said Marshal Cohen, chief retail industry advisor for Circana. “Purchasing shortfalls demonstrate the consumer’s current lack of enthusiasm, and when that is evident even during the busiest shopping periods, it should spark concern and change at retail.”

Consumer survey insights from Circana further underscore the shift in shopping behavior. When asked about motivations behind Black Friday and Cyber Monday purchases, fewer than 20 percent of respondents cited impulse buying across most categories. Instead, self gifting emerged as the leading driver, particularly in jewelry, books, fragrance, smart technology, and video games. Functional need also ranked high and was the top motivator in several categories.

Circana’s analysis suggests that December retail sales patterns reflect a broader challenge for growth in 2026. Historically, new product launches accounted for around 5 percent of discretionary sales, but that figure has dropped to just 2 percent, a level last seen during the pandemic. The absence of newness is limiting excitement and reducing opportunities for impulse spending.

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“Impulse purchases are a result of in the moment excitement, and a critical piece of the retail growth equation that is lacking right now,” Cohen said. “But there are still opportunities to engage the consumer if marketers elevate their focus on the biggest impulse driver — newness. New messaging, new product, new approaches are the only way to reignite the consumer’s enthusiasm and the only path for growth.”

For retailers and marketers, December retail sales data sends a clear message. Holding spend is no longer enough. Growth in 2026 will depend on creating urgency and excitement through innovation, differentiated storytelling, and product strategies that motivate consumers beyond basic needs.