The insight: The volatile macroeconomic environment is causing most shoppers to be more cautious with their spending, but it’s also driving a subset to spend more in search of comfort.

• Roughly 2 in 5 shoppers (38%) say that the current stress of economic uncertainty is making them spend more, according to a June LendingTree survey.
• Nearly half (47%) of US consumers admit to relying on retail therapy to boost their mood.

Lipstick effect in action: While interest in big-ticket purchases is muted, shoppers’ propensity to allow emotions to dictate spending is fueling sales for small luxuries like bag charms.

• The global Labubu craze is a prime example. Pop Mart, maker of the ugly-cute merchandise, expects at least a 200% increase in sales and 350% surge in profits for the first six months of 2025, as consumers worldwide line up for hours to get their hands on the limited-edition charms.
• Luxury brands from Coach to Miu Miu to Louis Vuitton are leaning into the bag charm opportunity; Coach parent Tapestry cited its cherry charm in particular as a “Gen Z favorite” that is driving sales.

Beauty is another area ripe for comfort spending.

• 42% of consumers have purchased beauty or personal care products as a form of retail therapy, per LendingTree.
• “Many consumers indicate that they are leaning into beauty as a comfort and escape from the stress of macro uncertainty,” Ulta CEO Kecia Steelman said during the company’s most recent earnings call, a trend that she expects will “support the category’s resilience.”

Our take: Consumers may be choosing to spend more of their money on essentials, but that doesn’t mean they can’t be swayed to spend a little extra on the occasional indulgence—particularly if there’s an element of novelty, or if the purchase offers a sense of emotional comfort. While the Labubu craze is likely to fizzle out as quickly as it started, shoppers will remain as eager as ever to splurge on small luxuries that bring them satisfaction.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.