U.S. consumers are poised to spend during the holiday season, driven by attractive discounts, despite concerns over consumer confidence and rising prices, according to Stephen Yalof, CEO of Tanger Outlets. In an interview with CNBC, Yalof emphasized that retailers are implementing substantial promotions to engage shoppers effectively. He noted that Tanger focuses on providing premium brands at consistently appealing price points, making it easier for consumers to justify their purchases.
The holiday season has seen a noticeable increase in in-store traffic at Tanger’s outlets, with full parking lots reflecting strong customer interest from November through December. Yalof expressed confidence in consumer resilience, stating that shoppers are eager to spend when they perceive value.
Recent data confirms this spending trend, with U.S. retail sales increasing by 4.2% year-over-year during the holiday season, not adjusted for inflation. Visa’s preliminary data shows that 73% of this spending occurred in physical stores, while online sales grew by 7.8% compared to the previous year. However, overall consumer sentiment remains fragile. The Conference Board reported a decline in consumer confidence, citing worries about high prices and government tariffs. Additionally, a CNBC survey revealed that 41% of Americans intended to reduce their holiday spending due to these financial concerns, marking an increase from the previous year.
Looking ahead, Yalof suggested that retailers are optimistic about future demand, highlighting a continued interest in physical retail spaces as major brands seek to establish a more direct presence in the market.
Why this story matters: This highlights consumer behavior amidst economic uncertainty, providing insights into spending habits during key retail periods.
Key takeaway: Despite low consumer confidence, attractive discounts have led to increased holiday spending.
Opposing viewpoint: Some consumers are still opting to spend less due to ongoing concerns about inflation and economic factors.
