Value shopping dominated the retail landscape in 2024.
Consumers in the U.S. became increasingly selective with their spending as they faced inflated housing and food costs.
Affluent shoppers shifted towards discount retailers for groceries, focusing on stores offering lower prices. Dining habits also changed, with more individuals opting for fast food or preparing meals at home rather than dining in sit-down restaurants. Retailers struggled as consumers preferred online shopping or visits to cheaper brands.
Many consumers also curbed spending on furniture and major renovations, instead choosing affordable home decor items.
These trends significantly influenced purchasing and dining behaviors in 2024. By late December, there were 48 retail bankruptcies reported in the U.S., increasing from 25 during the same period last year. Additionally, 22 restaurant chains filed for bankruptcy, marking the highest rate since 2020.
Key trends and challenges observed in 2024 include:
DISCOUNT RETAILERS
Discount retailers, particularly Walmart, thrived during economic downturns as consumers flocked to their low-cost grocery offerings, which make up 60% of sales. Similar to trends observed during previous recessions, higher-income households increasingly turned to Walmart. Executives believe a focus on online services and stylish offerings may help retain these customers.
E-COMMERCE
E-commerce leaders bolstered their reputation as budget-friendly destinations, launching low-cost product lines to attract price-sensitive shoppers. Major sales events continued to drive record revenues, though potential tariffs and labor unrest present challenges for the upcoming year.
FAST CASUAL DINING
Restaurant chains positioned between fast food and full-service dining saw increased success. Some brands experienced substantial revenue growth while addressing concerns about portion sizes by retraining staff to provide satisfactory servings.
DENIM TRENDS
The resurgence of wide-leg jeans shifted the denim market, boosting sales across various retailers. Both budget and luxury brands reported strong interest in this style.
FAST FOOD
Despite a slow start to the year, fast food chains adapted by introducing affordable meal deals to entice cost-conscious customers back. This strategy extended into 2025 as more value offerings were promised to meet changing consumer demands.
VALUE RETAIL
While value-oriented retailers continued to attract shoppers, not all chains fared as well. Some popular retailers struggled to maintain their appeal amid rising competition and shifting consumer preferences, prompting restructuring efforts.
HOME IMPROVEMENT
After a surge in home improvement spending during the pandemic, consumers pulled back in 2024. This decline affected sales in home improvement and electronics sectors, leading to adjustments within leading chains.
DEPARTMENT STORES
Department stores faced challenges in maintaining customer loyalty, with many shoppers shifting to online purchase options. Some chains announced plans to close underperforming locations while others began focusing on their off-price sectors to improve performance.
