The State of the American Shopper: Price gets shoppers to try new brands, but loyalty keeps them coming back
- One-third of shoppers have tried a new retailer in the last month
- Customers were lured into trying a new brand with a good sale (39%), convenience (37%), product assortment (34%) and social media content (19%)
- 58% of those who tried a new brand in the last month also signed up for that brand’s loyalty program
COLUMBUS, Ohio – March 23, 2026 – A new study from Bread Financial® finds that consumers are more likely than ever to change how and where they spend their money, giving forward-thinking retailers and brands a rare opportunity to win market share from competitors. The 2026 State of the American Shopper report shows nearly one-third (31%) of U.S.-based shoppers say they have tried a new retailer in the past 12 months, and half (53%) of consumers say price is their top factor in deciding which brands or retailers to shop.
According to consumer sentiment captured in the report, years of high inflation, economic volatility, and unsteady labor markets are coming to a head. U.S. consumers are looking beyond simply trimming budgets and weighing day-to-day purchasing decisions. Instead, the survey results indicate that consumers are more open to shopping around for value. And while price is still the leading driver of purchasing decisions, other factors such as convenience, product variety and experience also matter.
“Consumers are being more cautious with their spending, presenting an enormous opportunity for brands and retailers to stand out by offering not just the right products or services at the right price, but also by creating a seamless and thoughtful customer experience,” said Dennis McCarthy, Senior Vice President and Chief Revenue Officer at Bread Financial. “Providing flexible solutions that help shoppers stay mindful of their budgets and feel confident in their purchases can go a long way in building trust. By addressing both value and experience, brands can foster loyalty and strengthen relationships with these newly open-minded consumers.”
Consumers are being more cautious with their spending, presenting an enormous opportunity for brands and retailers to stand out by offering not just the right products or services at the right price, but also by creating a seamless and thoughtful customer experience."
Dennis McCarthy - Senior Vice President and Chief Revenue Officer, Bread Financial
Building Loyalty with Price-Sensitive, Anxious Consumers
In this climate of economic uncertainty, brands have a unique opportunity to build lasting relationships with value-driven shoppers. According to the survey, three-quarters (78%) of U.S. consumers who tried a new brand this past month say they are open to establishing a long-term relationship with that retailer, while 58% have already signed up for the new brand’s loyalty program.
Price is by far the top factor in consumer decision making today (53%) – far ahead of sales/promotions (16%), convenience (10%), product assortment (7%), service (6%), experience (4%) and multiple payment options (3%). When asked what retailers could do today to keep their loyalty, consumers overwhelmingly said that bringing prices down would be the most important factor. However, while a majority (48%) were focused on pricing, a plurality (52%) mentioned other factors – such as offering better promotions and sales (24%), providing better service (10%), improving in-store and online experiences (6%), and offering more product choice (6%) and payment options (5%).
Shifting consumer sentiment can be a double-edged sword. It may be a good time to reach out to new customers, but retailers and brands can’t lose sight of customer retention. In fact, that’s just good business.
Other insights from the 2026 report include:
- Micro optimism, macro pessimism: Three in four (75%) consumers believe they are on the right track personally, up from 69% last year, while the percentage of respondents who describe the economy as “fair to poor” dropped from 51% to 48%. Two in five respondents (39%) plan to spend the same, versus 33% who plan to spend more and 28% who plan to curtail spending. However, consumer confidence remains guarded, with almost half of respondents planning to focus on increasing their savings (48%) in the next year to safeguard against economic uncertainty. Inflation remains U.S. consumers’ top economic concern (60%), followed by government policy (45%), and gas prices (43%).
- Delayed payments: While cash, debit, and credit cards remain the most common payment methods, consumers are also taking advantage of buy now, pay later and installment loans – especially on purchases over $500. One in six survey respondents (16%) used buy now, pay later in 2025, while 9% used installment loans for larger purchases.
- Generational divide: Millennials are the most optimistic when it comes to the future of the U.S. economy and their own spending habits. Three in ten (30%) describe the economy as excellent to very good, compared to 36% of Gen Z, 26% of Gen X, and only 19% of Baby Boomers. Gen Z (79%) and Millennials (78%) are fairly to very confident they are on the right track financially, compared to only 74% of Baby Boomers and 69% of Gen X.
“Brands and retailers have a unique opportunity to win over competitors’ customers by focusing on delivering value and building loyalty,” McCarthy said. “Rather than simply competing on price, businesses can attract and retain shoppers by offering thoughtful, seamless omnichannel experiences. This includes leveraging strategic promotions, enhancing convenience, expanding product choices, and providing flexible payment options that meet customers where they are.”
Survey Methodology
The 2026 State of the American Shopper was compiled from qualitative and quantitative research.
An online survey was administered to 22,586 U.S.-based consumers in 2025 with quotas on age and gender to reflect the general population. This included 4,926 Gen recipients, 6,322 Millennials, 5,607 from Gen X and 5,653 Baby Boomers. The qualitative phase of research was completed by analyzing online discussion boards fielded from December 10 – 12, 2025.
About Bread Financial®
Bread Financial® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.
Bread Financial proudly marks 30 years of success in 2026. To learn more about our global associates, our performance and our sustainability progress, visit breadfinancial.com or follow us on Instagram and LinkedIn.
