Every month, we reach out to retail industry leaders in order to gain their perspective on the market. This month, we asked: Do you foresee a major shift in consumer spending habits in 2024, and what effect would it have on retail/dining as a result?
Ashley Casey, VP, Tenant Advisory, The Shopping Center Group (TSCG)
I’m excited to see the impact Generation Alpha, the largest generation in history, will have on consumer habits in 2024. In the next 12 months, expect a push for sustainable products in retail as Gen A leans into ecofriendly and ethically sourced products. Also, as this digital- savvy generation grows, so does the influence of online shopping. Think TikTok Shop and Instagram retail, “social shopping” if you will. The retail landscape is evolving, and traditional brick-and-mortar spaces are adapting. My focus is on innovating to cater to the consumers’ evolving preferences, turning this journey into a future-forward business strategy.
Jared Feldman, Executive Chairman, First National Realty Partners
We continue to be encouraged by what we are seeing across our portfolio as it relates to consumer spending. We believe that consumers are entering 2024 on stable footing based on continued strong job growth and better consumer sentiment in general. As inflation continues to normalize, we believe that will increase consumers’ disposable income and flow through to increased spending at restaurants and for services. While we anticipate volatility as we get closer to the election, our belief is that the Federal Reserve will likely reduce interest rates several times this year, which will reduce historically high rates for consumer credit. We see this in turn helping consumers finance larger ticket items that may have been put on hold during Covid due to supply chain disruptions, as well as higher financing costs in 2022 and 2023 as the interest rates for consumer credit increased dramatically during that time.
