Tanger CEO Yalof says consumers still spending despite low confidence

Holiday Shopping Trends: Consumers Seek Value Amidst Economic Uncertainty

Despite declining consumer confidence and concerns over prices, US shoppers are willing to spend during the holiday season, but only if they find attractive deals. According to Tanger CEO Stephen Yalof, retailers are responding by offering discounts to meet consumer demand, resulting in sustained traffic and sales. Yalof emphasized that Tanger’s approach is to provide access to premium brands at consistently compelling prices, which has helped drive sales during the holiday period.

Yalof noted that customers are looking for value-priced products, even if it means paying a higher price point than they initially wanted. He described holiday traffic at Tanger’s outlet centers as strong, with full parking lots and steady activity throughout November and December. This trend is reflected in recent data, which shows that US retail spending rose 4.2% year over year during the holiday season, before adjusting for inflation, according to preliminary data from Visa.

Retail Spending and Consumer Confidence

The Visa report, which tracks payments activity from November 1, found that in-store shopping accounted for 73% of spending, while online sales drove growth, rising 7.8% from the previous year. However, consumer confidence remains subdued, with the Conference Board reporting a 3.8-point decline in its consumer confidence index to 89.1 in December. This decline is attributed to growing anxiety over persistently high prices and the impact of President Donald Trump’s tariffs.

Despite this, Tanger’s CEO remains optimistic about demand in 2026, stating that retailers are confident about the future and are looking to control their physical retail presence. Yalof noted that brands are increasingly seeking to establish their own stores, rather than relying on department stores, which are continuing to consolidate. This shift towards brick-and-mortar retail reflects a desire for retailers to connect with customers and provide a more personalized shopping experience.

Looking Ahead to 2026

As the retail landscape continues to evolve, it’s clear that consumers are seeking value and convenience. With the rise of online shopping and the importance of in-store experiences, retailers must adapt to meet changing consumer demands. By offering competitive pricing, premium products, and engaging shopping experiences, retailers can drive sales and build customer loyalty. As Yalof noted, “Retailers want stores. They love bricks and mortar,” indicating a renewed focus on physical retail and a commitment to providing customers with a unique and compelling shopping experience.