But there’s still plenty to worry about for CEOs, especially those of any consumer-facing company. For one thing, the spending growth is fueled almost entirely by inflation and not shoppers buying more items. Salesforce, which tracks online spending, found order volumes fell 1% compared to last year while average selling prices increased 7%. Volume barely budged in 2024 either, so consumer spending has been stagnating for two years now.
What all these data point to is a consumer who, at the lower income end, is stretched but willing to spend on items they consider worth it. In other words, retail spending trends remain somewhat stagnant, echoing what C-suite executives told Wall Street in the last two weeks during retail’s earnings season. Here’s a smattering of how top Fortune 500 CEOs see the landscape heading into the all-important holiday season:
“Our customers are becoming increasingly choiceful as their discretionary income remains pressured. These customers are becoming increasingly savvy and are seeking more value.”—Kohl’s CEO Michael Bender
“There is a trend toward innovation and newness in the products that are coming down the pike that are keeping the consumer really energized. And retailers that combine good prices with a broad array of interesting merchandise and modern customer service remain the winners.”—Dick’s Sporting Goods CEO Lauren Hobart
—Phil Wahba
