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Retailers are using a mix of affluent targeting, discounts, celebrity campaigns, and footprint rationalization to offset inflation and tariff pressures. Consumers, meanwhile, are cautious and trading down, with online sales and buy-now-pay-later use rising even as overall spending growth remains very modest.
Key Takeaways
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Retailers lean on both wealth and value: Chains are courting higher-income shoppers with brands and experiences while also chasing value seekers through promotions, broader assortments and selective store closures.
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Consumer resilience is fragile: Shoppers still spend on big events like Black Friday, but behavior shows more deal-hunting, fewer impulse buys and increased use of short-term credit.
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Footprints and formats are shifting: From larger flagships to discount formats and online channels, retailers are reconfiguring where and how they sell to protect margins under sustained cost pressure.
