In a year marked by economic uncertainty and rising costs, value-conscious consumers reshaped the retail and dining landscapes in 2024.
As housing and food prices soared, shoppers and diners made deliberate choices about where to spend, gravitating toward affordability and practicality. Upscale consumers shifted to budget-friendly stores like Walmart and Aldi, while dining trends leaned heavily toward fast food and home cooking over traditional sit-down restaurants.
Meanwhile, department stores struggled, losing ground to online shopping and cheaper fashion chains like H&M, as buyers sought affordability without sacrificing style, reported the Associated Press.
Retail bankruptcies surged, reflecting the growing strain on businesses unable to adapt. Coresight Research reported 48 retail bankruptcies in the U.S. by late December, nearly doubling the previous year’s total, per AP. The restaurant industry fared no better, with at least 22 chains filing for bankruptcy, the highest figure since 2020.
Amid these challenges, consumers shied away from major home investments, opting instead for smaller, budget-friendly decor upgrades.
Walmart emerged as a clear winner, leveraging its reputation for affordability to attract even affluent customers. The retailer’s strategic expansion of online services and a push for stylish merchandise helped cement its appeal, reported AP. Executives noted that households earning over $100,000 annually made up a larger share of Walmart’s clientele.
Amazon capitalized on value-driven shopping trends by launching Amazon Haul, a storefront for items under $20, and delivering record sales during its July Prime Day event, per AP. Similarly, fast-casual dining chains like Shake Shack and Cava thrived by offering an appealing blend of quality and value. Even Chipotle, initially criticized for portion sizes, regained favor after retraining staff to ensure more generous servings.
Fashion retailers saw a surprising boost from the wide-leg jeans trend, which replaced older styles like boot-cut and skinny jeans. Retailers across the spectrum, from Levi Strauss to Walmart, reported robust sales as buyers embraced the new silhouette. The affordability of the trend played a key role, with jeans priced as low as $29 at budget retailers and as high as $1,200 at luxury brands like Gucci, reported AP.
McDonald’s experienced a rollercoaster year, beginning with declining sales as inflation-weary diners opted to eat at home. However, a $5 meal deal introduced midyear brought lower-income customers back, revitalizing its sales figures.