New York, USA, April 29th, 2026, NewsDirect
Spring 2026 Consumer Sentiment Report Highlights Consumers’ Continued Caution as Financial Pressure Persists
- Irrespective of future earnings expectations, consumers continue to plan to pull back on spending, signaling the persistence of dampened sentiment from past reports.
- As in Fall 2025, consumers plan to spend less in every category except grocery, where spending expectations are likely lifted by inflation rather than a desire to spend more. This points to a broad-based and sustained pullback in discretionary and non-discretionary spending alike.
- Consumers are increasingly making changes to navigate continued financial pressure such as shifting to lower-priced retailers, buying less volume, accelerating use of private label products, leveraging AI tools to discovery products and find the best value, and scrutinizing the value that premium products deliver
Global professional services firm Alvarez & Marsal’s Consumer and Retail Group (A&M CRG) has released its Spring 2026 Consumer Sentiment Survey, the latest chapter in its bi-annual report that tracks U.S. consumer behavior in response to ongoing economic conditions. Based on a nationally representative survey of over 2,100 adults, this spring’s edition reveals that financial pressure continues to weigh on consumers and is fundamentally reshaping the way they shop, spend, and make decisions across categories.
“Today’s consumers aren’t simply tightening their belts — they’re making thoughtful tradeoffs,” said Chad Lusk, Managing Director at A&M’s Consumer and Retail Group. “They’re cutting back on volume and dramatically changing shopping routines to stretch their wallets. At the same time, consumers are choicefully investing in products that deliver recognizable differentiation and value at higher price points. Whether it’s a premium grocery item with better ingredients, an apparel piece built to last, or a beauty product that actually performs, consumers are buying less but expecting more.”
The data reflects a consumer base seeking alternative ways to navigate financial pressure beyond simply spending less. Across categories, consumers are making deliberate behavioral shifts to stretch their wallets, and the cumulative effect is a fundamental change in how they shop.
The study found that:
- Even as earning expectations hold relatively stable, consumers continue to plan to pull back on spending. This reveals a disconnect between confidence in their income and willingness to spend, and how far behind many consumers still feel.
- Grocery remains the only category where shoppers expect to spend more, prompting them to actively seek ways to manage spending. Consumers are shifting to lower-priced grocers over cheaper brands, with 27% planning to keep their brands but switch to a less expensive store, up from 16% in Fall ’25. This is fueled by improving perceptions of lower-priced grocers.
- Private label continues to shed its trade-down reputation: 68% of consumers rate store brand quality as equal to or better than national brands, 56% say they provide unique flavors or offerings they prefer, and 69% say store brands meet their dietary or lifestyle needs. This sentiment is shared by both high- and low-income households and skews even higher for younger generations.
- In beauty, 43% of consumers have simplified their routines, but they are becoming more intentional about where they spend in the category. Spending habits in haircare and skincare are proving resilient and are seen as necessities, while fragrance and makeup purchases are skewing more discretionary.
- Consumers are investing intentionally: even as overall spend declines, shoppers buying apparel are selectively trading up for products that deliver on quality, performance, and longevity, with fit and comfort, quality of materials, and durability cited as the top trade-up drivers.
- AI is emerging as a meaningful force in shopping journeys, with 25-41% of consumers using AI for product discovery, research, and value identification across apparel, beauty, and grocery. Millennials and Gen Z in particular are increasingly reliant on this technology, with 64% of consumers aged 18-44 asking AI for recommendations and 66% of those acting on them.
“Consumers are re-orienting the importance of brand in their decision-making, and loyalty is waning,” said Lusk. “That’s not to say branded products cannot win — of course they can. But consumers are focusing less on the logo and more on the attributes that define the product. It’s more important than ever for brands to align their value propositions with what is actually creating purchase intent, and to continually give consumers reasons to buy. Brand reputation alone will not be enough.”
To download a pdf of Consumer Sentiment Survey Spring 2026, please visit:
https://alvarezandmarsal-crg.com/insight/consumer-sentiment-survey-spring-2026/
About Alvarez & Marsal Consumer Retail Group
Alvarez and Marsal’s Consumer and Retail Group (A&M CRG) is a management consulting firm that tackles the most complex challenges and advances its clients, people, and communities toward their maximum potential. CRG combines the best of A&M’s broader firm's bias toward action and practicality with deep consumer and retail industry experience. CRG partners with businesses across a wide range of categories including Food & Beverage, Beauty & Personal Care, Grocery, Mass Merchandise, and Apparel & Footwear to drive significant performance improvement.
Contact
David SchneidmanAlvarez & Marsal
dschneidman@alvarezandmarsal.com
