If you noticed that your nearest outlet mall was packed this holiday season, it wasn’t a fluke.
Stephen Yalof, CEO of Tanger Outlets, which operates 39 outlet malls across the country, told CNBC Money Movers Tuesday that, while consumers are wary about the future of the economy, they still spent at a healthy rate this holiday season.
“I feel like the customer is very resilient,” he said. “They’re looking to spend.”
Yalof’s feeling matches retail sales figures over the past two months, as well as a recent earnings call from cereal giant General Mills.
A new report from payment network Visa published Wednesday noted that holiday spending rose 4.2% this year, with in-store sales driving nearly 75 percent of consumer spending. Online sales rose 7.8 percent year-on-year, and electronics, the top holiday category among shoppers, rose 5.8 percent.
Shoppers leveraged tools such as artificial intelligence to get the most out of their money, Visa Chief Economist Wayne Best said in a statement.
“This season also marked a turning point, with artificial intelligence shaping how people discover products, compare prices, and interact with offers,” Best said. “This led to a more informed, more intentional consumer, ensuring they could stretch their discretionary spending.”
Consumers have been willing to spend when they find the right prices. General Mills noted the trend during its recent third-quarter earnings call. Shoppers making under $100,000 are facing financial weakness, but they’re buying more when they find a good discount, Jeff Siemon, vice president of investor relations and corporate finance, said during the call.
Yalof said that retailers are noticing consumers’ penchant for spending more when item prices are cut and are taking action.
“Retailers are discounting to meet the consumer, and the consumer is responding by shopping,” he told Money Movers.
There’s a segment of consumers who are willing to pay full price for an item – or even a little more than they planned to spend – if they know a store’s non-discounted pricing is competitive.
“[They’re] looking to come into a space where they can buy products at full price, maybe above the price point they want to spend, but they can embrace that price point because they know it’s value-priced every day,” Yalof told CNBC.
