Consumer spending expected to slow in 2024, says Colliers

There is an expected slowdown in consumer spending in 2024, with overall growth slower than in 2023, according to Colliers.

This could have a profound impact on retailer strategies, as consumers are likely to form resiliency by being judicious with their spending dollars. Other factors may come into play as household incomes fluctuate and the aging population — baby boomers and retirees — maintains their spending habits despite higher interest rates.

Retailers respond to economic apprehension by adopting various strategies to meet consumer demands for essential items like food and healthcare. Nonessential retailers may need to work harder to attract customers. As consumers retreat from eating out in favor of cheaper options, restaurant owners are worried about profits in 2024, and some are exploring AI technologies to manage employee costs and potentially improve efficiency.

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