As 2025 progresses, American consumers are showing a sharpened preference for value, reshaping how retailers must operate across price points. Discount chains like Five Below, Burlington and Dollar General are outperforming market expectations, reflecting a mass shift toward price-conscious spending amid inflationary pressures and tariff-related cost increases.
At the same time, premium brands are not immune to this trend, but they are adapting it. Ulta Beauty’s recent performance demonstrates a concept known as “affluent value,” where consumers still spend on discretionary items, but seek out perceived quality and convenience in return. Ulta’s omnichannel presence, which merges in-store engagement with digital accessibility, is proving particularly resilient.
Even retail giants like Walmart are not exempt from scrutiny. While revenue remains strong, profitability is under strain, highlighting that topline growth alone won’t satisfy Wall Street. Instead, the focus is shifting to net earnings and strategic adaptability.
As retailers plan for Q4 and beyond, success will hinge on offering clear, omnichannel value, whether through pricing, product curation or digital integration.
