Consumer News: States with the biggest tax refunds

The retailers profits show it is drawing inflation-weary consumers

By Mark Huffman of ConsumerAffairs

• Walmart beat analysts expectations in its most recent quarter: adjusted earnings per share came in at 62 cents while revenue rose by 5.8 % to approximately $179.5 billion.

• U.S. comparable store (and online) sales climbed 4.5 %, led by a 28 % jump in e-commerce sales, highlighting value-oriented consumer demand even amid inflationary pressures.

• Despite rising profits and raised full-year forecasts (net sales growth of 4.8 %-5.1% and EPS of $2.58-$2.63), Walmarts commentary implicitly underscores the ongoing affordability crisisparticularly stressed lower-income householdswhile also showing that the retailer is pulling in higher-income shoppers.

With so many Americans struggling to make ends meet, retailers like Home Depot are also struggling. On the other hand, Walmart is doing just fine, maybe because its attracting more customers who are trying to stretch their dollars.

Walmarts latest earnings report provides a revealing snapshot of retail amid what the company calls an affordability crisisa period when many consumers are stretched by inflation, wage stagnation and delayed government assistance, even as the retailer itself reports strong growth.

The company outperformed Wall Streets expectations and raised its fourth quarter outlook, and in doing so may have positioned itself as both a barometer of consumer health and a beneficiary of shifting shopping patterns.

While earnings were solid, they show that inflation-weary consumers are still limited in what they can spend. The retailer noted the growth, while robust, is slower than historical peaks and is being driven in part by more affluent households who are trading down. In short, while value-seeking shoppers are flocking to Walmart, the lowest-income consumers are under pressure.

The affordability crisis in action

Walmarts performance sheds light on how the affordability crisis is shaping retail trends:

• Consumers hunting value. With inflation still elevated and wage growth uneven, many shoppers are shifting spend from discretionary purchases to essentialsand they are gravitating toward retailers like Walmart that emphasize low prices and fast delivery. Walmarts comment that its low price model remains a core driver underscores this.

• Pressure on lower-income households. The company expressly referenced macro-headwindssuch as a slowing job market and delayed government supportthat are weighing on financially vulnerable households. Yet, even in this climate, Walmart is finding strength, suggesting it is capturing a mix of budget-conscious and higher-income customers alike.

• Value proposition and newer revenue streams. Walmart is leaning harder into its e-commerce, marketplace and advertising businesses higher-margin segments that can help offset margin pressure from low-price competition. Its global advertising revenue, for example, rose sharply (53% in the period) and points to an evolving business model.

• Pricing discipline versus inflation. Walmart noted that its in-store price increases remained modest compared with broader inflation a strategy consistent with its save money, live better brand but one that also suggests margin sacrifice to keep traffic flowing.

The broader takeaway

Walmarts results serve as a magnifying glass for the affordability crisis: consumers are gravitating toward value, retailers that can deliver both price and convenience are thriving, and the income divide in consumption patterns is widening.

Walmart may be emerging from this period in stronger shape than many peers, but the underlying consumer reality it reveals is less comfortable: for many households, shopping smart is no longer optional, its essential.

Electric rates are driving the increase

By Mark Huffman of ConsumerAffairs

• Americans now spend $532 billion annually on utilities, with median household costs reaching $4,168 a year

• New doxoINSIGHTS reports reveal the most and least expensive states and cities for essential services

• Rising energy demand, infrastructure investments, and price volatility push household utility costs up 15% in five years

As AI-driven energy consumption grows, infrastructure upgrades accelerate, and utilities turn increasingly toward renewables, the cost of keeping the lights on continues to climb for U.S. households.

New data from doxos 2025 Utilities Market Size and Household Spending Reports reveals Americans now spend $532 billion each year on essential utility services and many families are feeling the strain.

The analysis, covering four core utility categories electric, gas, water & sewer, and waste & recycling across 97% of U.S. ZIP codes, shows that the median household now pays $347 per month, or $4,168 annually, for basic services. Utilities account for 5% of the average household income, underscoring the essential but increasingly costly nature of everyday living.

A growing financial burden

The reports highlight how instability in energy markets, fueled by surging demand from data centers, rising fuel costs, and major grid investments, has pushed prices sharply higher:

• Electricity prices rose 6.2% over the past year and nearly 20% over five years, including a 7% rise in 2025 alone.

• Gas utility prices jumped 13.8% in the last year and are up 25% over five years, following supply shocks and global fuel disruptions in 20222023.

• Water & sewer (+4.8%) and waste & recycling (+6.5%) saw more gradual but steady increases tied to inflation and infrastructure upgrades.

All told, household utility costs have increased roughly 15% since 2020, outpacing wage growth in many regions.

American families are navigating a perfect storm of rising utility costs, said Steve Shivers, co-founder and CEO of doxo. He noted that sweeping infrastructure modernization and surging energy demand are converging, resulting in more costs being passed to households.

Utility spending by category

The reports break down how much Americans spend across the four major utility categories:

Electric Utilities

• Market size: $217B annually

• Median bill: $120/month ($1,440/year)

• 90% of households pay for electric services

• Represents 5% of total household bill payments

Water & Sewer

• Market size: $129B

• Median bill: $86/month ($1,036/year)

• Paid by 72% of households

Gas Utilities

• Market size: $110B

• Median bill: $71/month ($852/year)

• Paid by 66% of households

Waste & Recycling

• Market size: $75B

• Median bill: $70/month ($840/year)

• Paid by 53% of households

Where utilities cost the most

Maryland tops the list of most expensive states, with a median monthly utility cost of $546, driven by some of the nations highest water & sewer and waste & recycling bills.

Top 10 Most Expensive States (Median Monthly Total)

1. Maryland $546

2. Connecticut $488

3. Massachusetts $481

4. Washington $466

5. Hawaii $447

6. Alaska $445

7. Rhode Island $438

8. New Jersey $435

9. Maine $430

10. Vermont $425

Large cities with the highest utility costs

New York City leads all major U.S. cities with a staggering $853 median monthly utility bill, driven primarily by an exceptionally high median waste & recycling charge of $517 per month.

Top 10 Most Expensive Large Cities (Median Monthly Total)

1. New York, NY $853

2. Milwaukee, WI $588

3. San Jose, CA $579

4. San Francisco, CA $545

5. Baltimore, MD $503

6. Memphis, TN $497

7. Seattle, WA $493

8. Washington, DC $478

9. San Diego, CA $469

10. Detroit, MI $461

Groups say these toys can engage in dangerous conversations

By Mark Huffman of ConsumerAffairs

• Child-safety experts warn families to skip AI-powered toys this holiday season

• New advisory says AI toys can harm child development, disrupt relationships, and invade privacy

• Advocates cite documented cases of AI toys giving dangerous, explicit, or misleading responses to kids

A coalition of leading child-development specialists and technology-safety advocates is urging parents not to purchase AI-powered toys this holiday season, warning that the devices can undermine healthy development, expose families to serious privacy risks, and potentially endanger young children.

The advisory, released by Fairplay and signed by dozens of experts in child psychology and digital safety, pushes back against the booming marketing of smart companions for kids.

These toys which include plush animals, dolls, robots, and character devices equipped with conversational artificial intelligence are being advertised as educational and safe for even very young children. But experts say the reality is far more troubling.

AI toys embed chatbot technology inside familiar playthings, allowing them to converse with children in seemingly human ways. Companies behind products like Miko, Smart Teddy, Roybi, Loona Robot Dog, and Curio Interactives Gabbo/Grem/Grok pitch them as friendly, emotionally attuned companions. Major manufacturers, including Mattel, plan to introduce their own AI-driven toys.

Powerful AI models

But researchers emphasize that the conversational abilities that make these toys appealing come from the same powerful AI models that have already been associated with harmful interactions when used by children and teens.

Past incidents include chatbots encouraging unsafe behavior, initiating explicit sexual dialogue, and generating violent or manipulative content. U.S. PIRG tests have already found some AI toys offering children instructions on finding knives, lighting matches, and engaging in sexually explicit exchanges.

Because these products target younger children many of whom cannot distinguish between real relationships and programmed behavior the potential for harm is even greater, the groups say.

A central concern is the way AI toys leverage childrens natural trust. Young kids often treat digital voice assistants and talking toys as truthful and humanlike. Studies show, for example, that 75% of children ages 310 believe Amazons Alexa always tells the truth.

Trustworthy buddies

By presenting themselves as loyal friends or trustworthy buddies, AI toys may confuse childrens understanding of relationships and undermine their ability to build healthy emotional bonds with real caregivers, the advisory warns. It says that when companies design toys to appear empathetic or affectionate, they are effectively substituting machine responses for the messy, human interactions essential for resilience, social skills, and emotional growth.

The advisory also highlights extensive privacy and surveillance concerns. Many AI toys use always-on microphones, cameras, facial-recognition features, and gesture tracking often without children understanding they are being recorded. These tools can capture intimate family moments, private conversations, and even data from children who are not the toys owners.

Companies can use this trove of personal information to refine their AI systems or to target families with personalized marketing. Some AI toy makers are building subscription models that nudge children to request paid upgrades, while others could potentially sell sensitive data to third parties. History shows that connected toys have been hacked before, raising additional concerns about security.

Despite marketing promises of endless learning and imaginative engagement, the groups argue that AI toys tend to dominate play rather than support it. Instead of encouraging children to invent stories, explore freely, or use toys to express emotions key ingredients of healthy development AI toys drive interactions through prompts, scripts, and automated chatter.

Traditional hands-on play, the advisory notes, has decades of research confirming its developmental benefits. AI-driven play does not.

A call for caution

Fairplay and its co-signers say the risks outweigh the promises, especially given the lack of independent research showing any developmental benefit to AI toys. While companies race to release new AI-enabled products, advocates argue that children should not be used as test subjects for experimental technology embedded into toys that collect sensitive data, mimic relationships, and may say unpredictable or dangerous things.

Offline teddy bears and toys have been proven to benefit childrens development with none of the risks, the advisory concludes. As holiday shopping ramps up, experts urge caregivers to steer clear of AI-enabled toys and return to the simple, imaginative play tools that have supported children for generations.

Explore how Target is turning conversation into curated carts the future of shopping you can just talk to

• How Target is bringing a full shopping experience into ChatGPT from browsing to buying all conversational.

• The key features: third-party chat app integration, multi-item purchases, fresh food plus full assortment, flexible fulfillment.

• Why this matters: convenience, personalization and a peek at how AI is changing retail.

Imagine chatting with a bot and wrapping up your holiday shopping in one fell swoop thats what Target is aiming for.

The retail giant just announced its launching a first-of-its-kind conversational, curated shopping experience inside ChatGPT, giving shoppers the ability to discover, browse, and buy right where theyre already chatting. For consumers, it means less jumping between apps or sites and more just talk and shop convenience.

"At Target, everything starts with the guest, and that means meeting them wherever they are, including emerging spaces like ChatGPT, where millions of consumers visit," Prat Vemana, executive vice president and chief information and product officer, Target, said in a news release.

"We're proud to be one of the first retailers bringing shopping into this new channel, partnering with OpenAI to make discovery through the Target app in ChatGPT as easy and joyful as browsing our aisles. Our goal is simple: make every interaction feel as natural, helpful and inspiring as chatting with a friend."

"A big part of the AI transformation is happening inside enterprises, and Target is a great example of what that shift looks like when it's done with ambition and speed. We're excited to work with Target as they weave intelligence throughout their business to create useful and joyful experiences for their customers and their employees," Fidji Simo, CEO of Applications at OpenAI, said in the release.

The specifics: what it really offers

Heres how it works and why it stands out.

Targets experience within ChatGPT allows you to tag Target inside the chat interface and ask for help like you might with a friend e.g., Im planning a family movie night, what should I pick up? The chat tool responds with curated recommendations across Targets full assortment (think cozy blankets, snacks, candles, slippers and more).

Once youve found what you like, you build your basket in the chat, purchase in one transaction, and select fulfillment: free same-day Drive Up or Order Pickup in-store, or shipping.

Unique to this launch: fresh food is included alongside everyday essentials and style-led items. And the experience is designed for ease and inspiration.

The tech behind this includes a partnership with OpenAI and strategic investment in AI across Targets operations. Theyre leaning into AI to make discovery smarter, workflows smoother, and ultimately make shopping feel like a conversation rather than a chore.

Why it matters for you

If youre someone who shops at Target (or plans to), this could mean less friction fewer clicks, fewer apps, fewer distractions. Instead of toggling between browser tabs or apps, you simply ask, get suggestions, pick your items, checkout, and choose how youd like to receive them. For holiday shopping (or everyday errands), thats a meaningful upgrade in convenience.

Plus, from a broader perspective, it signals how retail is evolving. More brands will likely follow this model of conversational commerce effectively turning chat into checkout. For consumers, being comfortable with that shift means keeping an eye on how you shop, how your data is handled and how new experiences fit your style.

Insights from the American Farm Bureau Federations 40th Annual Thanksgiving Survey

• Thanksgiving dinner for 10 across America now averages $55.18, down about 5% from last year.

• The cost drop is largely thanks to a big price fall on frozen turkeys, even while fresh produce costs climbed.

• There are regional cost differences: the South remains the most affordable region, while the West leads as the highest-cost.

If youre pulling together your grocery list for Thanksgiving this year, you might breathe a little easier.

The American Farm Bureau Federation (AFBF) has released its 40th annual Thanksgiving dinner survey and, good news: the average cost of the spread for 10 people is $55.18, or about $5.52 per person. Thats a roughly 5% drop compared to last year.

After two years of price relief, things are easing back a bit, though its not quite back to pre-pandemic comfort levels. The survey gives a consumer-friendly snapshot of what many of us pay for a standard Thanksgiving meal.

Its encouraging to see some relief in the price of turkeys, as it is typically the most expensive part of the meal, AFBF Economist Faith Parum, Ph.D., said in a news release.

Farmers are still working to rebuild turkey flocks that were devastated by avian influenza, but overall demand has also fallen. The combination will help ensure turkey will remain an affordable option for families celebrating Thanksgiving.

How the Survey Was Done

Each year, the American Farm Bureau Federation (AFBF) enlists volunteer shoppers from all 50 states and Puerto Rico to help collect pricing data.

During the first week of November, these volunteers check grocery store shelves in person and also online via apps and websites to find the prices of a fixed "shopping basket" of Thanksgiving staples.

Importantly, they dont rely on coupons or bundled deals; they report regular retail pricing only.

This survey has been carried out every year since 1986, and AFBF keeps the same basic menu to make cost comparisons over time more meaningful.

The specifics: whats driving the changes

The menu in the survey covers the staples: a 16-pound frozen turkey, stuffing, sweet potatoes, dinner rolls, peas, cranberries, a veggie tray, and pumpkin pie with whipped cream, all sized for ten servings.
Heres whats moving:

• The frozen turkey is a big win for shoppers: the average price is now $21.50 (or $1.34 per pound), which is down more than 16% from last year.

• Half of the items surveyed showed price declines. For example, dinner rolls and stuffing both dropped in price, helped by lower wheat costs.

• On the flip side, some fresh produce items jumped significantly: frozen vegetable trays are up about 61%, and sweet potatoes climbed about 37% in price. These increases are tied to weather disruptions, labor shortages, and the inherent volatility of produce markets.

• The survey also broke down costs by region: the classic meal averages $50.01 in the South, $54.38 in the Midwest, $60.82 in the Northeast, and $61.75 in the West. For an expanded menu (adding items like boneless ham, Russet potatoes and frozen green beans), the cost goes up to $71.20 in the South and as high as $84.97 in the West.
  

In short: if youre feeding a group of ten this year, youre likely spending less than last year thanks mostly to a turkey price break but keep an eye on the produce aisle, because some sides are costing more.