Higher gas prices are forcing U.S. consumers to rethink their spending habits, with subtle changes observed in shopping routines.
The behavior changes are uneven across the population, with lower-income customers making noticeable cutbacks.
Major retailers such as Walmart, McDonald's, and Dollar General cited overall shopper resilience and cutbacks by lower-income customers during recent earnings calls.
However, when income tax refunds expire, economists predict a wider retrenchment of consumer spending due to the cumulative impact of higher gas prices and increased costs for food, clothing, insurance, and other goods and services.
Some consumers are adjusting their shopping habits to save money, such as planning fuel stops around Costco stores with filling stations.
Online food shopping is also becoming more popular to avoid impulse buys.
Retailers had previously highlighted consumer caution and selectivity as factors that could weigh on sales of nonessential products before the war.
However, shoppers appear to have curbed their discretionary spending even more as gas prices rose, with a 6% decline in non-grocery product sales between April 25 and May 23 compared to the same period in 2025.
The shift towards value-oriented retailers and online shopping is driven by consumers prioritizing affordability and convenience.
As income tax refunds expire, economists expect a wider retrenchment of consumer spending
