The Great Recession and Americans’ retreat into thriftiness are teaching retailers a new lesson: How to survive when consumers are focused on “needs” rather than “wants.”

For years, shoppers splurged on everything from $5 lattes to $200 jeans, and retailers responded by opening more stores and offering more choices. Now, beset by high unemployment and limited access to credit, shoppers are limiting most of their purchases only to essentials or the best deals.