While Many Consumers Are Still Willing Spenders, Retailers Are More Fearful of Recession

Featured Image

Senior retail leaders are more pessimistic about consumer confidence to spend in the face of inflation than consumers themselves indicate.

More than three-quarters (77%) of retail executives believe consumers are moderately to extremely concerned about recession, while 57% of consumers expressed the same concern in a report conducted by First Insight in partnership with WWD.

The retail executives also think consumers are cutting back more significantly than consumers say they are across multiple categories, potentially creating a more promotionally-driven —and therefore less profitable — holiday season than may be warranted.

The disconnect between retail leaders and consumers is most apparent within the apparel, footwear and accessories categories, according to the report. For example, 66% of retailers think consumers will cut back on jewelry, with only 32% of consumers in agreement.


retailers  consumer spending  recession