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Consumer Daily Reports

Shoppers are cutting back as they fear the effects of inflation and tariffs

By Truman Lewis of ConsumerAffairs
July 25, 2025

  • Nearly 4 in 10 households report lower income; over 70% expect a recession by next year.

  • Shoppers are cutting back across nearly all spending categories, except essentials like groceries and car-related expenses.

  • Tariffs, inflation, and shrinking savings are pushing consumers toward discounts, thrift, and smarter buying choices.


As summer 2025 winds down, U.S. consumers are facing tough financial decisions, according to KPMGs latest Consumer Pulse report. With inflation climbing, household incomes shrinking, and renewed fears over tariffs, Americans are spending less, saving less, and thinking twice before making non-essential purchases.

This isnt just belt-tightening its a complete rethink of value, said Duleep Rodrigo, KPMGs Consumer and Retail Sector Leader. Todays consumer wants purpose behind every dollar spent.

The report, based on a survey of over 1,500 consumers, found that 39% of households say their income has dropped, nearly double the number from last summer. At the same time, over 70% believe a recession is coming within the next year, leading to widespread spending cutbacks.

With tariffs back in the headlines, many consumers blame them for rising prices on food, clothing, electronics, and cars. Nearly 80% expect prices to go even higher, and half say theyre already cutting back or actively looking for deals to manage the impact.

Tariffs are no longer background noise theyre showing up on grocery receipts, said Heather Rice, KPMGs Consumer and Retail Tax Leader.

Smarter, sharper spending

Consumers arent necessarily giving up on spending theyre just getting smarter. The report shows a shift toward value-first behavior:

  • 50% of shoppers are cutting back overall

  • 49% are chasing discounts and promotions

  • Thrift store apparel spending is up 2%

  • Fast food visits are up 26%, while casual dining is down 38%

Only two categories are seeing growth: groceries and automotive.

Consumers are still buying, but theyre buying with purpose, Rodrigo said. Relevance, trust, and tangible value are driving decisions.

One-trip summer, wellness still a must

Even as budgets tighten, some spending remains sacred. Nearly 58% still plan summer travel, but theyre spending 7% less per trip and sticking to domestic destinations. Its a one trip instead of two mindset, with restaurants and shopping trimmed to preserve the getaway.

Health and wellness also remain a priority:

  • Fitness and mental health are top concerns, especially for younger consumers

  • 38% say theyre drinking less alcohol

  • Use of GLP-1 medications for weight loss or health is slowly rising, with 9% currently using them and 6% planning to start

Wellness is evolving, not disappearing, said Julia Wilson, KPMGs Consumer Strategy Leader. People are changing habits and focusing on what actually works.

Smarter tech use, sharper expectations

Digitally, shoppers are moving toward direct-to-consumer (D2C) channels for basics like clothing, food, and personal care. They expect secure payments, fast shipping, and hassle-free returns. While social media shopping is growing, skepticism around advertising and data use is high:

  • 43% are uncomfortable with companies using AI to analyze their personal data

  • Only 34% say theyre OK with it

Consumers are open to tech but only if it respects their privacy, said Sam Ganga, KPMGs AI and Cloud Leader. Trust and transparency are make-or-break.

The bottom line

Consumers in 2025 are not just spending less theyre spending smarter. With shrinking incomes, rising prices, and a looming recession, theyre focused on what matters: value, relevance, and results. Brands that respond with empathy, clarity, and real utility are the ones most likely to survive the shift.




Posted: 2025-07-25 18:24:42

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More News From This Category

Consumer News: Study: Headlight glare blamed in few crashes despite growing complaints

Wed, 15 Oct 2025 22:07:07 +0000

Glare rarely a crash cause, virtually unchanged from past decade, IIHS study finds,

By James R. Hood of ConsumerAffairs
October 15, 2025
  • IIHS study finds glare cited in only 12 of every 1,000 nighttime crashes

  • Brighter headlights have cut visibility-related wrecks, not increased glare

  • Automakers design changes since 2016 have sharply reduced poor headlight ratings


Despite growing complaints that todays car headlights are blindingly bright, a new study by the Insurance Institute for Highway Safety (IIHS) finds glare plays only a minor role in nighttime crashes.

From 2015 to 2023, glare was listed as a factor in only one or two out of every 1,000 nighttime crashes across 11 states, the institute said. The rate has remained virtually unchanged over the past decade even as headlights have become more powerful and effective at illuminating dark roads.

Although it can certainly be uncomfortable, headlight glare contributes to far fewer crashes than insufficient visibility, said IIHS President David Harkey. But that doesnt mean reducing glare isnt an important goal.

Brighter lights, safer roads

Headlight brightness standards set by federal regulators havent changed since 1997, but IIHSs own testing program launched in 2016 has driven major improvements. Manufacturers eager to earn higher safety ratings have adopted LED technology and adjusted headlight aim to balance illumination with reduced glare.

When IIHS began testing, only one of more than 80 headlight systems earned a good rating. Today, more than half of model year 2025 headlights tested by the institute rate good, and just 16% are rated marginal or poor.

Those changes have translated into fewer crashes. Previous IIHS research found that vehicles with good-rated headlights are involved in 19% fewer nighttime single-vehicle crashes and 23% fewer nighttime pedestrian crashes than those with poor-rated headlights.

Glare trends flat despite complaints

The new study, led by IIHS Principal Research Engineer Matthew Brumbelow, analyzed more than 24 million crashes in 11 states that record glare as a contributing factor. Fewer than 150,000 crashes overall mentioned glare, and only a fraction occurred at night.

Nighttime glare crashes made up only one or two per 1,000 crashes annually, with no sign of increase during years when headlights grew brighter. In fact, the glare rate was highest in 2015 and lowest in 2020.

Most glare-related crashes involved a single vehicle, often occurring on local two-lane roads in wet conditions. Drivers involved tended to be older and behind the wheel of older cars.

Drivers older than 70 seem to be most affected by headlight glare, Brumbelow said. Its also possible that the better visibility in newer vehicles provides some defense against glare from oncoming headlights.

Progress in reducing glare

IIHS testing shows automakers have dramatically cut glare from their headlights. In 2017, 21% of headlights tested produced excessive glare; by 2025, that share dropped to just 3%. Under IIHS scoring rules, any excessive glare disqualifies a headlight from earning a good or acceptable rating.

Still, experts say more can be done particularly for older drivers and those with eye conditions that make them sensitive to light. Measures such as lane-departure warning systems, better road markings, and automatic high-beam assist could further reduce the small number of glare-related crashes.

Adaptive driving beam (ADB) technology, which automatically adjusts the beam pattern to avoid dazzling oncoming drivers while keeping full illumination elsewhere, is also seen as a promising solution. But regulatory hurdles have slowed its rollout in the U.S., even though ADB systems have been common in Europe for more than a decade.

Wed like to see these obstacles removed, Harkey said. But the IIHS headlight rating program is already driving advancements that are making nighttime driving safer both by improving visibility and by reducing glare.


Read More ...


Consumer News: Aldi is offering a Thanksgiving dinner for 10 people for $40

Wed, 15 Oct 2025 19:07:08 +0000

The grocery retailer is hoping consumers can get everything they want for the holiday within their budget

By Kristen Dalli of ConsumerAffairs
October 15, 2025

  • Aldi officially announced its Thanksgiving meal bundle for 10 people for $40.

  • The discounted prices are running from October 15 through December 24.

  • Shoppers will be able to get everything they need for Thanksgiving dinner at these low prices.


While Thanksgiving is still over a month away, its never too early for retailers to start preparing.

Aldi announced that it will be offering a full Thanksgiving dinner for 10 people for $40, making each plate cost under $5.

The ALDI commitment to low prices is unwavering and I am thrilled that we are able to offer an even more affordable holiday meal than last year, Atty McGrath, CEO, ALDI U.S., said in a news release Saving our shoppers money is our mission every day but is especially important during the holidays when they need it most.

Whats included?

The full meal bundle includes over 20 items, giving shoppers everything they need for turkey, sides, desserts, and more.

Heres what Aldi is including in the meal pack:

  • Whole turkey (14 lbs.)

  • Chicken broth

  • Condensed cream of mushroom soup

  • Evaporated milk

  • Hawaiian sweet rolls

  • Mini marshmallows

  • Cut green beans

  • 100% pure canned pumpkin

  • Shells & cheese

  • Brown gravy mix

  • Poultry spices & herbs

  • French fried onions

  • Pie crust

  • Chicken or cornbread stuffing

  • Whipped dairy topping

  • Yellow onions

  • Baby peeled carrots

  • Celery

  • Cranberries

  • Sweet potatoes (3 lbs.)

  • Russet potatoes (10 lbs.)

Shoppers will have to add each item to their carts individually, and each eligible item will be flagged as part of the Thanksgiving sale. The discounted prices will be effective from October 15 through December 24, and no additional coupons or membership will be necessary to get these prices.

Aldi will be offering Thanksgiving dinner at these prices in any way consumers want to shop in store, online for pickup, or on a grocery delivery app.

Thanksgiving is the biggest food holiday of the year, and ALDI is proud to lead the industry once again on price, Scott Patton CCO, ALDI U.S., said in the release.

Price leadership is part of our DNA, and the holidays are when our commitment to value really shines. We believe families shouldnt have to make trade-offs to feed everyone, especially at Thanksgiving.


Read More ...


Consumer News: California governor vetoes bill to phase out nonstick cookware, other PFAS products

Wed, 15 Oct 2025 19:07:08 +0000

The bill's supporters included environmental and health advocates

By Truman Lewis of ConsumerAffairs
October 15, 2025
  • Governor says ban would limit affordable cooking options

  • Lawmakers, environmental groups call decision a setback

  • PFAS chemicals, known as forever chemicals, linked to health risks


California Gov. Gavin Newsom on Monday vetoed legislation that would have phased out a range of consumer products containing synthetic forever chemicals, including nonstick pots and pans. The governor said the proposal could hurt consumers by limiting affordable cookware options.

I appreciate the efforts to protect the health and safety of consumers, and while this bill is well-intentioned, I am deeply concerned about the impact this bill would have on the availability of affordable options in cooking products, Newsom wrote in his veto message.

The bill, Senate Bill 682 by Sen. Benjamin Allen (DSanta Monica), would have banned the sale or distribution of cookware with intentionally added perfluoroalkyl and polyfluoroalkyl substances (PFAS) by 2030. Other items containing PFAS such as food packaging, ski wax, dental floss, and childrens products would have been phased out beginning in 2028.

Senator vows to keep fighting

Allen said he was disappointed but pledged to continue pushing for tighter restrictions.
We know there are safer alternatives, he said. But I understand there were strong voices on both sides on this topic.

Allen argued that the veto lets manufacturers escape accountability, leaving taxpayers and local governments to shoulder the rising costs of removing PFAS from water systems. Ratepayers and local governments have been struggling to keep up with the ballooning costs of cleaning these forever chemicals from our water infrastructure, he said.

Health concerns over forever chemicals

PFAS are synthetic compounds that persist in the environment and the human body for years. The U.S. Centers for Disease Control and Prevention has linked PFAS exposure to changes in liver enzymes and to kidney and testicular cancers. A 2023 U.S. Geological Survey study found PFAS more prevalent in urban tap water in Southern and Central California than in most of the country.

Used for decades to make cookware nonstick and fabrics stain-resistant, PFAS have already been banned in some California products, including cosmetics and menstrual supplies.

Environmental groups denounce veto

Environmental advocates said Newsoms decision undermines Californias leadership in chemical safety. This veto is a major step backward for Californias leadership in protecting people and the planet from toxic PFAS, said Susan Little of the Environmental Working Group.

The Sierra Club, League of California Cities, and other public health organizations had backed Allens bill.

Industry groups warned of job losses, higher costs

The Chemical Industry Council of California and the Cookware Sustainability Alliance opposed the measure, citing concerns about job losses and trade disruptions. Steve Burns, president of the sustainability alliance, said the ban could affect thousands of jobs tied to Californias major ports and distribution hubs.

California is the entry point for nonstick cookware and other products that come into the Port of Long Beach, the Port of Los Angeles or the Port of Oakland, Burns said in aLos Angeles Times report. Theres a lot of jobs in the California economy that depend on products that have Teflon.

He also argued that science has not shown all PFAS to be harmful and that the state should have studied the issue further.

Chefs and celebrities weigh in

Several chefs and food industry figures supported the opposition. Napa chef Mark Dommen said eliminating nonstick cookware without a viable alternative would hurt restaurants and raise costs. Television host Rachael Ray also argued that easy-clean cookware helps families cook healthier meals.

Actor and environmental activist Mark Ruffalo pushed back, urging Ray to reconsider. Some of us have so much PFAS in our blood that we face a far greater risk of developing cancer, Ruffalo wrote on X. Lets work together to get PFAS out of the everyday products we bring into our home.

Continuing debate over PFAS science

The CDC notes that research on PFAS health impacts remains ongoing. There are many factors that can influence the risk of these effects, such as exposure, individual factors and other health determinants, the agency says.

For now, Californias broader effort to eliminate forever chemicals from consumer goods remains on pause but lawmakers say the fight isnt over.


Read More ...


Consumer News: Walmart and OpenAI team up to make shopping easier

Wed, 15 Oct 2025 19:07:08 +0000

How your next Walmart order could start with a simple chat

By Kristen Dalli of ConsumerAffairs
October 15, 2025
  • Soon, youll be able to shop Walmart directly through ChatGPT using something called Instant Checkout.

  • The new approach treats AI like a shopping assistant predicting your needs, planning, and prompting you before you even ask.

  • Walmart is already using AI across many areas, from speeding up fashion cycles to reducing customer service times by 40%.


Imagine saying, Hey, I need groceries for the week, to ChatGPT and within a few messages, your cart is filled, checkout is done, and delivery is scheduled.

Thats the vision Walmart and OpenAI just unveiled.

The two companies announced theyre teaming up to make shopping easier than ever for consumers. The partnership will allow ChatGPT users to make Walmart purchases directly in the AI chatbot.

For many years now, eCommerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change, Doug McMillon, President and CEO, Walmart Inc. said in a news release.

There is a native AI experience coming that is multi-media, personalized, and contextual. We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI.

From search bars to smart conversations

With this new partnership, Walmart is moving toward a more natural, conversational online shopping experience.

They call this agentic commerce where AI doesnt wait for you to act, but instead learns your habits and nudges you when it thinks you might need something.

So instead of you browsing, AI will help steer the shopping journey. Want to plan a weeks meals? The system could suggest ingredients. Need to restock cleaning supplies? It might whisper gentle reminders before you run out.

What Walmart already does with AI and whats changing

Walmart isnt entering this world blind. They already use AI in key parts of their operations:

  • Their AI-backed tech has helped shorten fashion production timelines (in some cases by as much as 18 weeks)

  • Their customer service teams get a boost; AI helps resolve issues faster, reportedly cutting resolution times by up to 40%

  • And internally, Walmart is pushing AI literacy giving associates training, rolling out ChatGPT Enterprise internally, and even embracing OpenAI certifications.

The new OpenAI tie-up adds a layer: customers themselves will interact directly with AI (like ChatGPT) as part of their shopping experience. Instant Checkout means your conversation ends with a completed order.

Why this matters for you

This isnt about robots replacing people. Walmart emphasizes a people-led, tech-powered ethos.

The aim is to smooth out the bumps to take friction out of shopping so you spend less time hunting for things and more time doing what you want.

Eventually, your next Walmart trip might start with Hey ChatGPT instead of open Walmart.com.


Read More ...


Consumer News: Amazon plans 250,000 U.S. holiday hires — here’s what applicants should know

Wed, 15 Oct 2025 19:07:08 +0000

Hirings broad, timelines are short: pay, hours, and tips to beat the rush

By Kyle James of ConsumerAffairs
October 15, 2025
  • Pay: $23/hr avg for regular roles; $19+/hr seasonal (about $30+/hr with benefits).
  • Seasonal job postings go fastmany fill within hours once they go live.
  • Apply at hiring.amazon.com or text NEWJOB to 31432.

Amazon recently announced it will hire 250,000 people in the U.S. for the 2025 holiday rush, keeping seasonal hirings relatively flat the past two years.

The roles span full-time, part-time, and seasonal jobs in the companys fulfillment centers and transportation network.

Pay and benefits

Amazon says regular full and part-time employees now average $23 an hour (with benefits), and seasonal roles average over $19 an hour.

The company also announced in September that its investing more than $1 billion to raise pay and lower healthcare costs for U.S. fulfillment and transportation workers; Amazon estimates average total compensation (pay plus elected benefits) at $30+ an hour.

Where the jobs are located

Amazon is hiring in small towns and big cities, adding new job listings every week from October through December to handle holiday demand.

Jobs range from picking, packing, and sorting to delivery station and transportation support.

How to apply (and get alerts)

Applicants can search openings at hiring.amazon.com. If you dont see any current openings in your area, be sure to sign up for job updates by scrolling to the bottom of the page and entering your email address, or phone number, along with your zip code.

You can also sign up for mobile alerts by texting NEWJOB to 31432. Theyll automatically text you back and ask you to reply with your zip code so they can send you jobs in your area.

They also emphasized that seasonal job listings tend to fill quickly once they go live, so text notifications can help you apply early.

Because jobs fill quickly, be sure to create an account on their hiring page even if no positions currently exist in your area. That way youve completed your initial application and background screenings, so when jobs do become available, you can apply quickly and hopefully get ahead of the oncoming rush.

Why it matters

Uncertainty over the economy and tariffs have many retailers cautious over holiday hiring. Lands End and Bath & Body Works both announced theyll be hiring less seasonal workers while Macys and Target have declined to offer numbers, leading many experts to speculate that they'redoing the same.

But Amazons job target suggests a steady demand in e-commerce shopping this holiday season.

The 250,000 plan matches last years target, even as some retailers trim seasonal staff. For jobseekers, that means a large pool of hourly roles with predictable schedules and a chance to move into more permanent positions come January.

What happens after the holidays

Amazon emphasizes advancement from seasonal to regular roles and touts programs like Career Choice (tuition pre-payment for approved certificates and degrees).

Workers who stay beyond their first season typically see wage increases; Amazon points to multi-year pay increases alongside its recent compensation changes. (Note: education and promotion opportunities vary by site and role.)

Key tips before you apply

Check the exact posting for shift times, overtime expectations, and site-specific pay. Also, keep in mind that hourly rates can vary by market and shifts.

According to their jobs website, Most early morning shifts earn more per hour. These shifts typically start between 4:00 a.m. and 6 a.m. and go for 10 hours with a 1-hour lunch break.

Dont hesitate to apply quickly when a job alert hits your area. Local facilities often fill seasonal slots within hours or days after postings go live.

Compare total compensation. If youre considering a regular (non-seasonal) offer, be sure to factor in the value of all the benefits when making a decision.

Drug testing is a possibility

Depending on the role, you can expect to get screened for drugs, even seasonal workers.

While Amazon's current drug testing policy varies by state, warehouse workers should expect a simple mouth swabwhich tests for hard drugs.

As of 2021, Amazon does not test for marijuana unless you are a delivery driver, transport truck driver, or Amazon Air pilot.


Read More ...


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