EP 262: A Preview of Mixed Holiday Spending Trends

In a wide-ranging conversation, Shelley and Tom McGee, president and CEO of ICSC, discuss a mix of consumer trends that will impact holiday spending. It might surprise you to know that Gen X controls 33 percent of all spending (although only 19 percent of the U.S. population); so why are retailers still ignoring them? There’s $1.4 trillion wealth transfer to this generation that nobody's talking about. Overall, consumers are resilient but cautious, price-sensitive and selective, focusing on value and budgeting more carefully making discount retailers the beneficiaries. Next, while tariffs haven’t dramatically increased prices yet, the real impact has been on consumer mindset and timing — people buy earlier, avoid waiting for discounts, and are cautious about overspending. Gift cards are increasingly popular as practical, budget-friendly gifts that also appeal to younger, sustainability-minded generations. In terms of retail development, there’s a supply-demand mismatch in retail real estate. There’s a strong retailer demand for well-located suburban spaces, but they are facing limited new construction. Retail sales have risen about 82 percent since 2009, but physical retail space has only grown 7 percent. Tom reinforces not to rule put physical stores; they remain critical for browsing and as fulfillment centers. Listen and learn about how this confluence of trends results in a mixed prediction for holiday.

Special Guest: Tom McGee, President and CEO, ICSC

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