The ‘Frugal Consumer’ is Rewriting the Rules of Retail, Driven by a Need for Control
Table of Contents
Despite economic anxieties, Americans are still spending — but how adn why they shop is undergoing a profound shift, fueled by a desire for control in an unpredictable world.
Pittsburgh — Katie Thomas, a retail expert and leader of the Kearney Consumer Institute, notices everything. From the subtle color changes in store window displays to the strategic spacing of aisles in Nordstrom, she dissects the behaviors of shoppers like an anthropologist studying a new tribe. Her observations, honed during years of “reconnaissance†at places like Ross Park Mall — a location she frequented as a teenager — reveal a fundamental change in the American consumer mindset.
“Are you shopping today just for fun? Holiday shopping?†Thomas recently asked a woman laden with bags from Madewell, J.Crew, and White House Black Market, learning the purchase was a mix of necessity and self-indulgence — a new jacket and sunglasses for her daughter. As Thomas analyzes a confluence of data — government reports, corporate figures, surveys, and direct interactions with shoppers and retail workers — she’s identified a core driver of current spending habits. “What it actually all goes back to is control,†she explains. “They’re trying to figure out what they can control in a world where they feel a sheer loss of control.â€
From Pandemic Uncertainty to Economic Volatility
The shift is a direct response to a period of unprecedented disruption. Lurching from the COVID-19 pandemic into surging inflation, tariffs, government shutdowns, and global instability, consumers are actively seeking agency through their spending choices. This is reshaping shopping patterns not just this holiday season, but looking ahead to 2026.
“I’m calling it the frugal consumer,†Thomas says, clarifying that this isn’t the traditional penny-pinching frugality of previous generations. “We’re seeing exhaustion that extends far beyond the wallet. Where am I spending my money, my time, my energy — how am I distributing that in a world that has felt so exhausting lately?â€
The Many Faces of Control
The desire for control manifests in several ways. Shopper boycotts, seen recently with Bud Light and Target, demonstrate a willingness to wield purchasing power as a form of protest. There’s also a growing trend of consumers switching to store-brand groceries — even for items like chips and candy — rejecting higher prices for name brands. and a notable shift in aesthetic is underway.
During the pandemic, a preference for neutral colors and comfortable clothing — the “quiet luxury†aesthetic — dominated. Now, though, color and maximalism are making a strong comeback, with bold prints and playful accessories signaling a desire for self-expression. “We want to be loud. We want to be individuals. We want to feel seen,†Thomas observes. She notes that even retail employees at Ross Park Mall have observed a trend toward “wow†pieces — items that offer a sense of joy and individuality — rather than basic necessities.
Contradictory Signals in the Economy
This focus on “wow†pieces seems counterintuitive given the broader economic climate. Consumer sentiment remains near historic lows, yet retail spending continues to climb, with the holiday season projected to break records. The National Retail Federation forecasts holiday spending will surpass $1 trillion for the first time.Thomas’s own forecast is more conservative, but still anticipates record-high figures.
“I think we often miss the psychological piece of it,†she says. “It’s not just where are consumers spending their dollars? It’s the why and the how.â€
The “why†is rooted in the desire for festivity and gift-giving, a search for joy amidst economic uncertainty. Shopping itself offers a sense of normalcy and control; Thomas recalls that going to stores was among the activities people missed most during pandemic lockdowns.
Who is Driving the Spending?
The “how†of this spending is tied to demographics and financial resources. Much of the growth has been fueled by wealthier consumers, benefiting from strong stock market performance and rising home values. However,spending isn’t limited to this group. While job growth has slowed,unemployment remains relatively low,and wages are increasing faster than inflation.
Despite these positive indicators, shoppers are increasingly discerning and focused on value, as retailers like Walmart, Macy’s, and Dick’s Sporting Goods have repeatedly emphasized throughout the year. “Guests are choiceful,stretching budgets and prioritizing value,†a Target executive told investors recently.
For the holidays, Thomas is observing a pullback on impulse purchases — those extra stocking stuffers or self-gifts that were common during the late-pandemic shopping sprees. She predicts that retailers may need to offer deeper discounts than anticipated to incentivize spending and address the consumer’s need for control.
This theory was confirmed during a recent conversation with Shea Harmison, a shopper visiting Ross Park mall from West Virginia. “I’ll probably just try not to buy as much nonsense stuff,†Harmison said. “Not spending money on things that I don’t think are going to be useful or they might not use… Stuff to buy just to buy, you know?â€
And Thomas predicts — a forecast shared by online-spending trackers like Adobe Analytics — that this will force stores to offer deeper discounts this holiday season to loosen consumers’ grip on their wallets.
