A new report by global consultancy Simon-Kucher finds that the American Dream is being reshaped by inflation, with 90% of Americans changing their quality of life goals. The study, titled "The New American Dream: What Americans Want Now at 250," surveyed 5,000 people and reveals a shift away from traditional wealth accumulation toward personal fulfillment and flexibility. This redefinition of success has major implications for businesses as consumers prioritize immediate needs and financial control over long-term milestones.

Key Findings on Consumer Behavior

The research highlights significant generational and demographic differences in how Americans define success. Inflation has fundamentally altered purchasing behavior, leading many to postpone long-term goals for short-term needs. The report indicates that traditional markers of success, such as homeownership and early retirement, are becoming increasingly difficult to achieve.

Generational Shifts in Values

Younger generations are leading the charge in redefining success. Gen Z and Millennials are increasingly valuing flexibility over income, a departure from the traditional focus on maximizing earnings. The report notes that 51% of Gen Z have sacrificed long-term financial goals to improve their quality of life today, compared to only 22% of Baby Boomers. Additionally, 25% of Gen Z utilize multiple income streams to build financial resilience.

Strategic Implications for Businesses

Simon-Kucher advises that these consumer shifts are not temporary but represent a fundamental reset in how Americans view success and consumption. Companies that fail to adapt to this "New American Dream" risk losing relevance. The consultancy recommends that businesses earn trust by emphasizing transparent pricing, practical values, and affordable solutions rather than aspirational options. Pricing models should offer flexibility and avoid one-size-fits-all offerings to accommodate consumers facing financial pressure.

"The American Dream is still alive, but traditional signs of success, like pensions and wealth are less relevant today because of macroeconomic pressures," said Shikha Jain, Partner, Head of Consumer in North America at Simon-Kucher. "Today, Americans are defining success on their own terms, focusing on making life work and finding a sense of normalcy."

U.S. consumers maintained spending levels in May despite economic pressures, resulting in a 1.3% year-over-year increase in overall retail spending even as unit demand fell 1.5%, according to a report by Circana, LLC. The divergence between rising dollar sales and declining unit volume signals a shift toward more selective, value-conscious purchasing behaviors. Spending patterns in the four weeks ending May 30, 2026, were influenced by the delayed impact of elevated fuel costs and increasingly erratic consumer behavior.

Sector performance varied significantly during the period. Retail food and beverage sales grew 2.2%, with unit demand essentially flat at +0.1%, suggesting stable consumption. Non-edible consumer packaged goods (CPG) posted a 2.3% increase in dollar sales alongside a 2.1% drop in unit demand. Discretionary general merchandise revenue rose 1.2%, but unit sales declined sharply by 4.3%, reflecting heightened price sensitivity and a focus on necessities.

Discretionary Spending and Lifestyle Priorities

Discretionary categories faced pressure, with non-edible CPG and general merchandise experiencing pronounced softening in unit demand. Footwear and apparel were particularly strained, with declining volumes and pricing compression. Private label brands now account for 49% of apparel sales revenue, indicating a trade-down behavior driven by value considerations.

Despite tighter budgets, consumers continued to invest in lifestyle-oriented categories. Entertainment-driven segments like video games and toys recorded notable gains, while beauty products remained a steady driver of discretionary spending. Practical purchases, including automotive products, technology, and small appliances, reflected a prioritization of essential needs.

Retail Sector Performance

Marshal Cohen, chief retail industry advisor for Circana, noted that while consumers have adjusted to elevated gas prices, they remain highly engaged and intentional. He emphasized that resilience in spending is not automatic and must be activated through compelling, destination-driven experiences that balance enjoyment and value.