A new Consumer Trends Tracker from data analytics firm dunnhumby released on Wednesday shows that more U.S. households are reorganizing where they shop in response to tightening budgets.
Mass-market retailers and dollar stores are drawing more customers, while traditional supermarkets are no longer the default choice for millions of families.
Walmart’s Reach Hits New High
The shift is most visible at the top end of the market. Walmart‘s (NYSE:WMT) customer penetration reached 72% of U.S. households in December, the first time it has crossed the 70% mark since the tracker began nearly four years ago.
At the same time, mass retailers as a group have caught up with traditional grocers in overall penetration, underscoring how price-focused shopping has become. Dollar stores are also gaining ground, overtaking warehouse clubs to become the third-most-visited retail channel.
Behind those shifts is a simple reality: more Americans feel financially stretched.
“U.S. households are realigning where they shop based on affordability,” said Matt O’Grady, President of the Americas for dunnhumby.
According to the report’s December survey, 57.4% of households said they would struggle to cover an unexpected $400 expense, while 27.5% reported skipping or cutting meal sizes for financial reasons. Both indicators rose compared with the previous survey.
The Perception Gap On Inflation, Coupons And AI
That sense of strain is shaped as much by perception as by reality.
Consumers estimated food-at-home inflation at 19.6%, even though official data showed prices rising just 2.4% year-on-year in December. Among households earning under $50,000, perceived inflation rises to 23.6%, nearly ten times the true rate.
In response, consumers are leaning harder on deals, coupons, and value-focused formats. The share of shoppers redeeming loyalty coupons most or all of the time rose to 47% in December, up 2.5% from August, according to the report.
Meanwhile, Only 15% of U.S. consumers said they used AI tools for grocery shopping in the past year, mostly to build shopping lists or compare prices.
In November, Mark Zandi, Chief Economist at Moody’s Analytics, warned of a “serious affordability crisis” in the U.S. economy, attributing high consumer prices to higher tariffs and restrictive immigration measures.
Although U.S. holiday spending reached a historic $1 trillion in December, the surge was largely due to inflation and tariff-driven price increases rather than higher sales volume.
Affluent households continued to spend strongly, while lower-income shoppers exercised caution, increasingly relying on credit cards and Buy Now, Pay Later options to stretch their budgets.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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