• by Sarah Mahoney , Yesterday

Early holiday sales are holding up on paper,  but the strength seems to be in grocery aisles, not gift lists. New data from Circana show that while overall retail spending remained steady in November, discretionary categories struggled to gain traction during the season’s most important shopping weeks.

Overall, U.S. retail sales rose 1% in November, with unit demand flat compared to the same period last year, according to Circana. Growth was concentrated in essentials: food and beverage sales increased 2% in dollars and 1% in units. By contrast, discretionary general merchandise declined 2% in dollars and 4% in units.

That weakness became more pronounced during peak holiday moments. Black Friday week delivered a nearly 3% decline in discretionary dollar sales and a 5% drop in units. Cyber Week followed with a 1.3% dollar decline and a 4.4% unit drop. Combined, the two weeks ending Dec. 6 produced a 2% dollar decline and nearly a 5% unit drop compared to last year.

“Consumer prioritization is resulting in very specific pockets of growth at deeper levels within retail that are falling short of creating broader momentum,” said Marshal Cohen, chief retail industry advisor for Circana, in the report. “Flat discretionary general merchandise sales so far in the fourth quarter of 2025 are revealing the pressure on consumers’ wallets, as well as the diminished impact of the peak holiday shopping weeks.”

The limited number of outperforming categories was consistent across Black Friday and Cyber Monday, including toy building sets, beauty products, and arts and crafts. Circana said those gains reflect a shift away from chasing must-have items toward lifestyle-driven gifting tied to hobbies and personal interests, further blurring the distinction between in-store and online holiday events.

“The distinction between Black Friday and Cyber Monday has been lost — shopping during this holiday season has become even less about coveting the deal and more about curating ideas around what to give as gifts,” Cohen said.

The picture could still evolve as the calendar tightens. The National Retail Federation estimates that 158.9 million consumers plan to shop on Super Saturday, the final Saturday before Christmas — a new record. As of early December, shoppers had completed just over half of their holiday purchases, suggesting a significant share of spending remains compressed into the season’s final days.

Consumer sentiment, meanwhile, has shown modest improvement. The University of Michigan’s latest Survey of Consumers found sentiment rose slightly in early December, driven largely by improved expectations around personal finances. Still, overall attitudes remain cautious, with high prices continuing to weigh on discretionary spending.