Consumers Adapt Strategies as Retailers Face Pressure to Offer Memorable Experiences

  • Consumers anticipate higher prices due to tariffs and are cutting budgets in some categories.
  • 56% of Gen Zers and 62% of millennials use AI for product research.
  • Only up to 28% discounts expected from retailers this holiday season, similar to last year.

This holiday season, consumers are bracing for higher prices due to tariffs and cutting their budgets in some categories, according to the International Council of Shopping Centers (ICSC). In response, they are seeking value and deals. A survey from KPMG found that eight in ten shoppers expect price increases, while 56% of Gen Zers and 62% of millennials use AI for product research. As economic concerns rise, retailers face pressure to offer memorable shopping experiences and discounts. Adobe Analytics predicts up to a 28% discount on products, similar to last year’s rate.

Factuality Level: 9
Factuality Justification: The article provides relevant information about consumers’ responses to higher prices during the holiday season and how they are using AI for shopping decisions. It also includes statistics from various surveys and predictions about retailers’ discounts. The information is accurate and objective without any clear signs of sensationalism or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about consumers’ behavior during the holiday season and how they are adapting to higher prices due to tariffs. It also mentions the use of AI in shopping decisions and retailers’ discount strategies. However, it lacks a deep analysis or new insights beyond what is already known.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry
Financial Rating Justification: The article discusses how consumers are anticipating higher prices due to tariffs and their impact on the holiday season shopping, which affects retailers’ sales and discounts. It also mentions that retailers will maintain a similar level of discounts as last year. This is relevant to financial topics as it deals with consumer behavior and its impact on the retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.

Reported publicly: www.retaildive.com