Consumer Sentiment Survey Predicts Cautious Holiday Spending in 2024

The Fall 2024 Consumer Sentiment Survey by Alvarez & Marsal's Consumer and Retail Group highlights a cautious approach to holiday spending among U.S. adults, with significant implications for retailers and the economy. Based on responses from over 2,100 individuals, the survey indicates a continuation of conservative spending habits, with lower-income households planning the most substantial cutbacks. This trend underscores the impact of inflation, interest rates, and job market concerns on consumer behavior.

Chad Lusk, Managing Director at Alvarez & Marsal, points out the necessity for retailers to adapt to a market where consumers prioritize value and research before making purchases. The survey also notes a shift towards store loyalty over brand loyalty, challenging traditional marketing strategies and emphasizing the need for compelling in-store experiences and value propositions.

Despite the growing preference for online shopping platforms, in-store shopping remains dominant, highlighting the importance of omnichannel strategies for retailers. The report also reveals a divergence in saving behaviors across income groups, reflecting broader economic uncertainties and differing financial pressures.

The findings suggest potential ripple effects throughout the economy, affecting sectors from manufacturing to employment. For policymakers, the survey offers insights into consumer sentiment that could guide economic policies. Retailers are advised to optimize their omnichannel experience and pricing strategies to meet the evolving priorities of value-focused consumers.

As the holiday season approaches, the Alvarez & Marsal report serves as a vital tool for businesses and analysts, providing a detailed overview of consumer sentiment and spending intentions. The full report, available on the Alvarez & Marsal website, offers further insights for navigating the current consumer market's complexities.