May 21, 2026
kzibert/Depositphotos.com
What’s Behind the ‘Revenge Shopping’ Taking Place, Despite an ‘Unaffordable’ Economy?
In a recent report for CNN Business penned by senior reporter David Goldman, the argument that “revenge shopping” is taking place across many segments of the American consumer base was advanced, with this shopping taking place despite a strained economic portrait. He’s not alone in that assessment: Earlier this year, The National Retail Federation also suggested that revenge shopping was taking place, particularly in apparel.
“Consumers have never hated an economy as much as this one, and they’re taking out their frustrations by doing what they do best. Shopping. It’s a paradox that has defined the post-pandemic era: Americans’ unabated spending has fortified an economy that they perceive as unaffordable,” Goldman began.
“Walmart, Target, Home Depot and Lowe’s this week all reported surprisingly strong earnings. Even more confounding: They mostly delivered optimistic outlooks for the rest of the year, even as inflation is expected to remain high throughout 2026. They’re not alone. Left-for-dead Gap is resurgent. Starbucks and Chipotle, which had both previously said consumers abandoned them because of high costs, reported that customers are dining with them again,” he added.
Goldman went on to note a few distinct possibilities driving this ongoing trend:
- Larger tax refunds this year could be spurring shopping increases, as consumers are “more flush with cash” that in years previous.
- Wealthier consumers are enjoying record-high stock prices and returns, and are responsible for a significant proportion of this continued spending. At the same time, Bank of America Institute data showed spending growth across all income levels (low-income up 3.1%, middle-income up 3.6%, and high-income up 4.9%).
- Perhaps the most poignant point made was that high prices were not deterring spending, with some shopper willing to take on debt and pull savings to keep up the pace.
“But it may just come down to a simple truth: Underestimating the American consumer has been a losing bet for years,” Goldman wrote, also highlighting several data points — the latest University of Michigan consumer confidence survey and CNN’s own poll data on people’s feelings surrounding the economy — as indicating that “Americans broadly feel downtrodden about their financial situations.”
Goldman also cited Keith Buchanan of Globalt Investments on the subject.
“We’re scratching our heads about this. Consumers are spending at a pace that just seems to defy gravity. The irony is they feel horribly about it.”
There are a few caveats, however: The tax refund bump will fade, the question of whether gas prices will remain as high as they currently are remains unanswered, and Target and Walmart execs are exhibiting some degree of hesitation about consumer resilience in the near future.
“There’s a tipping point. We’re surprised that we haven’t really gotten there,” Buchanan added.
BrainTrust
Tanya Thorson
Revenue & Customer Growth Leader, StrategiX Marketing
Georganne Bender
Principal, KIZER & BENDER Speaking
Lisa Goller
B2B Content Strategist
Recent Discussions
Discussion Questions
Do you believe that US consumers are reacting to economic stressors by “revenge shopping”? What is the psychology behind the persistent spend across income levels, despite perceptions of an affordability crisis, in your opinion?
How much of the increased spend do you believe to be tied to general inflation and higher-priced necessities, rather than continued discretionary or luxury spending?
Do you believe that shoppers will eventually be forced to significantly curtail spending, or no? Why or why not?
Poll
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Let’s get to the basics:
It’s not revenge to buy food or fuel or clothing; so people continue to buy those things, and if the price is going up …well guess what, the $ sales of those will go up, even if the unit sales are stagnant. In short, it’s not so much sales are up despite inflation, but rather sales are up because of inflation. (Just last night I had the quite remarkable experience of crossing the $100 mark filling up)
As for more discretionary purchases: many are doing well…it’s not revenge or surprising, that they’re buying.
Retail therapy can offer a rush of dopamine, serotonin and endorphins to distract and soothe us in a volatile year.
Shopping can also be a conspicuous flex. Stock market investors have more money to burn lately.
Over the past couple of months, retail sales growth has been strong. But some of this is simply because of inflation. Take April where overall sales grew by 4.6%. Remove gas (where prices spiked) and growth comes down to 3.3%. Remove inflation and underlying volumes come down to 1.3%. That’s not bad, but it’s a much more modest picture that still reflects a cautious consumer. That said, higher tax refunds have been helpful and a lot of consumers have been indulging themselves with the windfall. That dynamic will obviously eventually fade. In other words, the picture is much more nuanced than the dramatic headline suggests.
I agree the headline is bigger than the reality. Some of this is inflation, higher gas prices and temporary tax refund behavior. Dollar growth does not always mean true demand strength.
But I also think there is a deeper consumer psychology at work.
I don’t see this as pure “revenge shopping.” I see it as permission shopping.
Consumers feel squeezed, but they are still looking for moments of control, comfort, identity and reward. From the outside, that can look irrational. From the shopper’s side, it makes perfect sense.
People may pull back in one category and still spend in another because the purchase gives them something bigger than the product. Apparel, beauty, home, food, wellness and small luxuries become signals of normalcy. They say, “I still get to feel like myself.”
That is the risk for retailers. Spending does not mean shoppers are carefree. It means they are editing harder. They want value, relevance and emotional payoff.
The real story is not revenge shopping. It is cautious consumers giving themselves permission.
“Everything is expensive and I can barely make ends meet… I know, let’s go shopping!” said no one ever.
I have a hard time buying into the idea of “revenge shopping.” When consumers are worried about paying the bills, splurging at the mall doesn’t exactly feel like a natural reaction.
Everything is expensive and I can barely make ends meet… I know, let’s go shopping!” said no one ever.
Well, let’s be fair: I believe it was the plotline of a number of Sex in the City episodes.
Carrie’s plot lines for sure!
Reporting sales in a discussion like this, without accounting for inflation, or in these times, gasoline is irresponsible. My students would get an “F”.
Revenge? How about Anger? Anger shopping. Or ‘what choice do I have’ shopping? I have to fill up my gas tank. What choice do I have? Yeah, I’m angry about it. It’s $1.50 a gallon extra that is being siphoned out of my wallet and going to the oil companies. And for what? What value is accruing to households and the economy in general from all those $$$ now diverted to the oil companies? And fertilizer costs? And ultimately food costs? This was all c o m p l e t e l y unnecessary. How about anger shopping followed by revenge voting…???
The problem with a snapshot versus a video is that only the present is captured. This is not so much revenge shopping as it is dealing with consumer dynamics in the moment. A video would show the impetus of income windfalls (stock market performance & tax refunds) as well as the post snapshot drag of increasing inflation & market basket price increases, notably gas & groceries. Unfortunately, I think the next frames of the video will portend problems.
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Let’s get to the basics:
It’s not revenge to buy food or fuel or clothing; so people continue to buy those things, and if the price is going up …well guess what, the $ sales of those will go up, even if the unit sales are stagnant. In short, it’s not so much sales are up despite inflation, but rather sales are up because of inflation. (Just last night I had the quite remarkable experience of crossing the $100 mark filling up)
As for more discretionary purchases: many are doing well…it’s not revenge or surprising, that they’re buying.
Retail therapy can offer a rush of dopamine, serotonin and endorphins to distract and soothe us in a volatile year.
Shopping can also be a conspicuous flex. Stock market investors have more money to burn lately.
Over the past couple of months, retail sales growth has been strong. But some of this is simply because of inflation. Take April where overall sales grew by 4.6%. Remove gas (where prices spiked) and growth comes down to 3.3%. Remove inflation and underlying volumes come down to 1.3%. That’s not bad, but it’s a much more modest picture that still reflects a cautious consumer. That said, higher tax refunds have been helpful and a lot of consumers have been indulging themselves with the windfall. That dynamic will obviously eventually fade. In other words, the picture is much more nuanced than the dramatic headline suggests.
I agree the headline is bigger than the reality. Some of this is inflation, higher gas prices and temporary tax refund behavior. Dollar growth does not always mean true demand strength.
But I also think there is a deeper consumer psychology at work.
I don’t see this as pure “revenge shopping.” I see it as permission shopping.
Consumers feel squeezed, but they are still looking for moments of control, comfort, identity and reward. From the outside, that can look irrational. From the shopper’s side, it makes perfect sense.
People may pull back in one category and still spend in another because the purchase gives them something bigger than the product. Apparel, beauty, home, food, wellness and small luxuries become signals of normalcy. They say, “I still get to feel like myself.”
That is the risk for retailers. Spending does not mean shoppers are carefree. It means they are editing harder. They want value, relevance and emotional payoff.
The real story is not revenge shopping. It is cautious consumers giving themselves permission.
“Everything is expensive and I can barely make ends meet… I know, let’s go shopping!” said no one ever.
I have a hard time buying into the idea of “revenge shopping.” When consumers are worried about paying the bills, splurging at the mall doesn’t exactly feel like a natural reaction.
Well, let’s be fair: I believe it was the plotline of a number of Sex in the City episodes.
Carrie’s plot lines for sure!
Reporting sales in a discussion like this, without accounting for inflation, or in these times, gasoline is irresponsible. My students would get an “F”.
Revenge? How about Anger? Anger shopping. Or ‘what choice do I have’ shopping? I have to fill up my gas tank. What choice do I have? Yeah, I’m angry about it. It’s $1.50 a gallon extra that is being siphoned out of my wallet and going to the oil companies. And for what? What value is accruing to households and the economy in general from all those $$$ now diverted to the oil companies? And fertilizer costs? And ultimately food costs? This was all c o m p l e t e l y unnecessary. How about anger shopping followed by revenge voting…???
The problem with a snapshot versus a video is that only the present is captured. This is not so much revenge shopping as it is dealing with consumer dynamics in the moment. A video would show the impetus of income windfalls (stock market performance & tax refunds) as well as the post snapshot drag of increasing inflation & market basket price increases, notably gas & groceries. Unfortunately, I think the next frames of the video will portend problems.