News Briefs

U.S. consumer sentiment fell to a four-month low in September amid increasing concerns about high prices and the economy 

Consumer sentiment fell to 48.1 in September, down from 51.7 in August, according to The University of Michigan’s Index of Consumer Sentiment. It is down 15% from January 2026.

In addition, views of current and year-ahead expected personal finances both weakened about 10% this month, with concerns over high prices continuing to climb. The Index of Consumer Expectations fell to 46.3 from 51.5 in August. The Index of Current Economic Conditions inched down to 50.9 from 51.9.

Buying conditions for durables improved a bit, in part due to a perception that completing such purchases now would help consumers avoid higher prices in the future. The short-run outlook for business conditions plunged amid renewed worries that elevated fuel prices and re-escalating trade disputes could pass through to the economy as a whole.

“Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year,” said Joanne Hsu, director, surveys of consumers. “ After particularly large declines in sentiment this month, Republican sentiment is now 20% lower than January 2026; Democrats are down 13% over the same period."

INFLATION

Year-ahead inflation expectations jumped from 4.0% last month to 4.6% this month, the highest reading since June. The current reading substantially exceeds the 3.4% seen in February before the Iran conflict began, along with all 2024 readings. 

Long-run inflation expectations ticked up to 3.4%, ending three consecutive months at 3.3%. These expectations remain higher than their 2024 range of 2.8% to 3.2%.

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In August, Coleman Parkes polled 150 U.S.-based loss prevention and organized retail crime prevention executives representing companies with annual revenues ranging from less than $10 million to more than $10 billion. 

Consumers around the globe are expected to rely on artificial intelligence-based tools this holiday season with shopping set to soon kick off for many.

New Infobip research also reveals that 63% of consumers in nine markets worldwide have used an AI assistant or chatbot while shopping during the past 12 months, with 22% using one frequently.

Among consumers willing to use AI for shopping, almost three-quarters (73%) would use it to compare products, and more than two-thirds (67%) would use it to find deals matching their preferences. Nearly a quarter (23%) say they have not used one yet, but would consider it. 

[READ MORE: Mastercard Economic Institute: Holiday spending to rise 5.5% year over year]

Consumers’ reliance on AI tools comes as they start the holiday season early. Nearly six-in-10 respondents will have started holiday shopping by early November, while only 19% wait until Black Friday week itself.

A quarter (25%) of those surveyed plan to start holiday shopping in October or earlier, and a third (34%) plan to begin in early November.

“Black Friday is no longer a single day or even a single week – it has become an extended conversation between consumers and brands, beginning with discovery and continuing through purchase, delivery and support,” said Goran Juršić, chief growth officer at Infobip. “AI gives retailers the opportunity to make those conversations faster, more relevant and more personal. The winners will not be the brands that send the most messages, but those that understand when, where and how each customer wants to engage.”

Infobip’s full report can be found here.

Dollar General is doubling down on toys for the holiday season.

The deep discounter’s expanded holiday assortment includes more than 170 seasonal toys. Half the assortment is priced at $10 or less, while approximately 95% is priced $20 or less. The offering includes a dedicated shelf featuring toys priced at $5 and under.   

Dollar General is also offering 25% off toy purchases of $75 or more in a single transaction starting Oct. 1 through Dec. 24. The offer applies to qualifying toy purchases, including clearance toys, with some exclusions.

“This holiday season, we’re focused on delivering what matters most to our customers: creating memorable moments for less because holiday toy shopping should be exciting, not stressful,” said Steve O’Brien, Dollar General’s VP and division merchandise manager. “We’re helping families discover affordable gifts from brands they know and love and we are bringing back our printed toy guide to help create a little nostalgia with wish-list making with prices families can feel good about.”

As of July 31, the company operated 21,148 Dollar General, DG Market, DGX and Popshelf stores across the United States and Mi Súper Dollar General stores in Mexico.

Seattle has become the first city in the country to ban the use of personalized, or surveillance, pricing in the sale of groceries.

The Seattle City Council has passed the Fair Pricing and Transparency Act, which prohibits large online and brick‑and‑mortar grocery retailers from using a consumer’s personal data to change the price they see for groceries and other essential items. This includes, for example, data about a consumer’s web-browsing history, their real-time location, inferences about their income, family size, health conditions and more. Prices must be clearly posted and available to all shoppers.

The bill also permits a vast array of discounting practices while requiring increased transparency around discounts and placing some limitations on how consumers can be profiled.

[READ MORE: Maryland’s surveillance pricing ban signals new era for AI-driven grocery pricing]

“Food is an essential good that’s getting more expensive all the time,” said Mayor Katie Wilson. “People have been clear: they don’t want their data fed into algorithms that decide how much they pay at the grocery store. Everyone deserves transparent pricing and equal treatment, not hidden systems that charge some shoppers more than others.”

Other states have taken action to sign bills into law to ban the practice of surveillance pricing, including New Jersey, Maryland and Connecticut.

Digital-first Set has made its Midwest store debut.

The Los Angeles-based athleisure brand has opened a store in Chicago’s West Loop, on Randolph Street. It joins the company’s two other locations, in New York City’s West Village neighborhood and West Hollywood, Calif. The company also has a pop-up in Austin, Texas.

Set, which sells bras, leggings, shorts and hoodies at affordable prices, said it designed its Chicago store as a "love letter" to the Midwest. The space is meant to feel more like the living room of a nostalgic lake house as opposed rather than a traditional retail store.  

The decor elements are designed to make the space feel distinctly Chicago and rooted in the community. They include shiplap walls, A-frame ceilings, vintage sports collectibles, founder family photos and a custom Set baseball logo wall.

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The store also features an experiential dressing lounge where shoppers and their friends can grab a drink from the complimentary fridge, catch the game on TV or play a classic hook-and-ring toss while they shop.

Founded by Lindsay Carter, Set was launched by online in 2018. The brand has developed a huge social media following through its transparent behind-the-scenes content and customer involvement, with polls on Instagram and TikTok that let fans vote on upcoming colorways, themes and product drops.