Shoppers pull back spending despite an ease in inflation rates

Retailers brace for consumer spending cuts in 2024 amid inflation concerns, according to a new report from GlobalData. More than half of U.S. consumers plan to tighten their shopping budgets despite a projected ease in inflation rates to 2.9%.

The uncertain economic outlook prompts 51.5% of consumers to reconsider their retail expenditures, leading to shifts in apparel shopping behaviors. In response, nearly half of U.S. shoppers (46.7%) are turning to online price comparisons for informed purchasing decisions, while 42.1% are opting for more affordable brand alternatives, reflecting a shift away from brand loyalty towards cost consciousness.

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