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.