Consumers say they’re financially worse off and it’s changing how they shop

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Americans have been getting financially squeezed for a while now, but things aren’t exactly improving.

According to the latest EY consumer sentiment survey, 1 in 4 shoppers said they were financially “worse off” compared to a month ago.

The survey, which included responses from more than 2,000 consumers in December 2025, also found that about 70% cited rising grocery prices as a top concern.

In response, shoppers are making trade-offs. Per EY, 15% of shoppers said they’ve switched personal care brands to cut costs.

Then there are the usual (read: discretionary) suspects such as dining out, travel, entertainment, and apparel—all categories consumers pulled back on.

It seems even higher-income households are tightening their belts. Many are leaning on sales, price comparisons, and private labels to stretch their budgets, a shift that has helped drive interest in budget retailers over higher-end brands.

“Rising financial anxiety shows pressure is building beneath the surface,” Mark Chambers, EY Americas retail sector leader, said in a statement. “Reaching consumers long term will require retailers to strike the balance between implementing cutting-edge technology and keeping human experience at the forefront. Retailers that emphasize value, convenience, and affordability will be best positioned to maintain consumer loyalty in the months ahead.”

Consumer anxieties around prices have been significantly impacting shopping patterns for some time, with shoppers becoming more value conscious. Per a recent Alvarez & Marsal survey, 34% of shoppers said they’d spend less in 2026.

The shift toward value is also showing up in other corners of retail. It may be why fast-food restaurants like McDonald’s have seen their sales numbers rise in the last year.