Placer.ai: Discretionary Spending Was Resilient in Q1
The research firm noted that ‘consumerism doesn’t take a backseat to economic uncertainty.’
Apr 22, 2026 | 2 min read
Consumer resilience remained strong in Q1 2026, according to research firm Placer.ai’s recent report, with “modest retail traffic growth despite macroeconomic pressures and ongoing industry challenges.” According to the firm, it’s a reflection of the notion that “consumerism doesn’t take a backseat to economic uncertainty.”
The beginning of 2026 did have some obstacles, including winter weather, geopolitical conflict and retail bankruptcies. However, Placer.ai said the outlook for discretionary spending remains positive amidst the uncertainty.
“Foot traffic to major brick-and-mortar retail chains was up 1.5% year-over-year in Q1 2026. And while some of that growth is due to somewhat easy comparisons, with discretionary industries stagnating over the past few years—especially in the first quarter of last year—the slight increase also suggests that some discretionary categories are beginning to regain traction. Non-discretionary industries continue to outperform their general merchandise counterparts,” the firm wrote.
The research also noted that while all the macroeconomic trends indicate otherwise, with unemployment and layoffs rising, consumers are still shopping.
“Retail bifurcation continues, with value-based offerings still driving much of the growth, but consumers in the U.S. can’t seem to talk themselves out of being influenced to buy,” Placer.ai wrote.
Research found that hobby stores, like Michael’s and Barnes & Noble, along with home improvement stores like Home Depot and Lowe’s, saw a positive uptick in foot traffic in Q1. Self-care trends also led beauty purchases to tick up.
Placer.ai noted that discretionary spending that makes consumers feel good and on experiences continue to see growth.
However, the outlook remains uncertain due to geopolitical conflict. Earlier this month, The Washington Post reported that consumer sentiment is deteriorating. “The University of Michigan’s preliminary April reading showed confidence plunging 11% from March, with every demographic group posting declines. Year-ahead inflation expectations surged to 4.8%, the largest one-month jump since last April. Notably, 98% of interviews were completed before the ceasefire announcement, suggesting the final reading could look somewhat better,” the Post said.
