ICSC’s latest Consumer Economy Report indicates that shoppers are continuing to spend even as they become more cautious and value-focused. The organization noted that consumers are now more selective in how they allocate their dollars, paying closer attention to prices, perceived value and broader financial risks, despite reporting less concern about inflation itself.
One of the report’s central findings is a shift in brand loyalty. Shoppers are showing a greater willingness to move between brands, retailers and product types to secure better pricing or terms. This change suggests that many consumers are prioritizing cost savings and value over longstanding preferences, reflecting a more flexible approach to purchasing decisions.
The report also highlights an important distinction between higher spending and higher demand. According to ICSC, 77% of surveyed consumers reported that their monthly spending has increased. However, the primary drivers of this increase are elevated prices and new categories of expenses rather than a meaningful rise in income or purchasing power. Only 14% of respondents attributed their higher spending to higher income, underscoring the impact of inflationary pressures and changing household cost structures.
ICSC president and CEO Tom McGee said the data shows consumers remain resilient and generally optimistic about their financial futures, but they are making more deliberate tradeoffs to manage budgets. He noted that households are sharpening their focus on value and exercising greater selectivity about where and how they spend. This includes a closer watch on financial flexibility as shoppers balance day-to-day spending with longer-term financial considerations.
McGee also pointed to rising concern about job security, suggesting that income stability may now weigh more heavily on consumer decision-making than inflation on its own. As a result, consumers remain engaged and willing to spend, but the report describes a more measured and careful approach to purchasing than in prior periods. Households appear to be actively weighing options, comparing prices and reassessing what is essential versus discretionary.
The Consumer Economy Report findings are based on online surveys of consumers conducted by ICSC in early May and early July. These survey waves capture responses during a period of ongoing price pressures and evolving household budgets, offering a snapshot of how shoppers are adapting their behavior in real time.
For retailers and retail real estate stakeholders, the report suggests that strategies aligned with value, pricing transparency and flexibility may be increasingly important. As shoppers continue to spend but demonstrate greater mobility between brands and formats, properties and retailers that can clearly communicate value and accommodate budget-conscious behavior may be better positioned to retain and attract customers.
