In 2024, values are trendy.
High housing and food prices have made American shoppers and restaurant patrons more picky about where and how they spend their money.
Wealthy customers traded in Walmart and Aldi. Customers chose fast food and home-cooked meals instead of sit-down restaurants. Department stores have suffered as shoppers shop online or at cheaper chains like H.&middle.
Residents have also moved away from buying furniture or investing in expensive renovations, opting to freshen up their homes with inexpensive items like picture frames and candles.
These changes will transform the purchasing and dining landscape of 2024. Coresight Research tracked 48 retail bankruptcies in the U.S. as of Dec. 20, compared with 25 in the same period a year ago. At least 22 restaurant chains have filed for bankruptcy this year, the highest number since 2020, according to BankruptcyData, a company that tracks bankruptcy filings.
Here are some trends and dead ends the Associated Press is tracking for 2024:
walmart
America’s largest retailer typically shines in difficult times as shoppers turn to grocery discounters, which account for 60% of Walmart’s overall business. And just like during the Great Recession of 2008, Walmart found that households earning more than $100,000 made up a larger portion of its customers. But this time, company executives think they can retain those customers because they’ve expanded their online offerings and added more stylish clothes and mannequins.
Amazon
Online giant Amazon has built a reputation as a deal destination to attract discount-hungry shoppers. In November, it launched Amazon Haul, a new low-cost store that sells electronics, clothing and other products for less than $20. And the company said it had record sales during its Prime Day event in July. But Amazon could face headwinds next year due to the threat of tariffs on Chinese products and U.S. labor unrest.
fast casual chain
It’s been a good year for restaurant chains like Shake Shack, which are a step up from fast food but still offer good value. Cava, which specializes in fresh Mediterranean food, said sales soared more than 33% in the first nine months of the year as it rapidly built new restaurants. Chipotle found some traction with customers who valued smaller portions, but won them back after retraining its staff to ensure “consistent and generous” portions.
jeans seller
The wide-leg jean silhouette, the ‘it’ style that quickly replaced bootcuts and skinny jeans, has driven sales at a variety of retailers this year. Macy’s, Abercrombie & Fitch, Levi Strauss, Gap and Stitch Fix have been among those citing the trend as a big sales driver in recent months. Value-conscious buyers can get it for $29 at Walmart. On the higher end, Gucci has released a wide-leg version for $1,200.
mcdonalds
This year hasn’t started well for McDonald’s. The company’s sales plummeted as inflation-weary customers chose to eat at home instead of going out to buy fast food. But a $5 meal discount introduced in June helped draw lower-income customers back into stores. McDonald’s has extended the contract until the end of this year and said more value will be available in 2025. The fast food giant is trying to win back customers after an E. coli outbreak linked to raw onions in Quarter Pounder burgers sickened at least 104 people in the fall. 14 states.
target
Target’s cheap, chic fashion and home décor has long had great appeal, but the chain faces challenges in 2024. Unlike Walmart, Target relies more on discretionary items like clothing, as less than a quarter of its sales come from food and beverages. It has always fought the perception that it is more expensive, and analysts say its products have recently fallen into disarray. Still, Target drew crowds on Black Friday with exclusive Taylor Swift merchandise.
Starbucks
Starbucks has had a tough year. Ordering is becoming increasingly complex, with thousands of ways to customize your drink. This resulted in long lines and inaccurate pickup times on the mobile app. New products, such as coffee with olive oil, failed to attract customers, who also grew tired of Starbucks’ high prices. Starbucks hired a new CEO, Brian Niccol, in the fall to turn things around. However, the labor dispute that led to the December strike could continue to hurt the company in 2025.
legacy restaurant
Decades-old chains are throwing in the towel in 2024 as they succumb to increasing competition, changing dining patterns and large portfolios of older restaurants. Red Lobster, TGI Fridays and Buca di Beppo have all filed for Chapter 11 bankruptcy protection and closed dozens of stores. The leaner Red Lobster later emerged from bankruptcy under new ownership, but it remains to be seen whether the older chains can recover after years of declining sales.
Big ticket item
At the height of the coronavirus pandemic, U.S. consumers took advantage of low interest rates and stimulus benefits to remodel homes and make other large purchases. But last year they backed off. This has been difficult for retailers like Best Buy, the largest consumer electronics chain in the U.S., which has noted declining sales of consumer electronics, home theater and gaming equipment. Home Depot and Lowe’s also reported lower sales of big-ticket items, especially discretionary kitchen and bathroom remodeling projects.
department store
Department stores, especially those targeting middle-class shoppers, have struggled to retain customers as many turn to online shopping or fast-fashion retailers. Among the worst performers was Menomonee Falls, Wisconsin-based Kohl’s. The company has reported declining sales for the 11th consecutive quarter this year. Outgoing CEO Tom Kingsbury has made some recent promotional missteps, including cutting back on fine jewelry, popular store brands and smaller sizes. Customers will see the category appear again next year.
Macy’s said it would close 150 stores of the same name and open 15 upscale Bloomingdale’s stores over three years. Meanwhile, upscale Nordstrom had a better-than-expected fiscal year thanks to a surge in sales at its off-price Nordstrom Rack stores.
