How retailers are responding to the affordability crisis this holiday season

Core Insights - Retailers are adapting to the affordability crisis this holiday season by adjusting pricing strategies and focusing on lower-priced items to attract consumers [1][3][7] Consumer Sentiment - Consumer sentiment has dropped to 51 points in November, marking the second-lowest score since 1952, indicating significant economic concerns [2] - The decline in sentiment is attributed to worries about jobs, affordability, and tariffs, leading consumers to prioritize value and essential spending [4] Retailer Strategies - Retailers are increasingly investing in lower-priced items and adjusting their product assortments to cater to budget-conscious consumers [3] - Target has lowered prices on thousands of everyday food and essential items to help families manage their budgets amid declining sales and profit guidance [4][5] Market Conditions - Companies like Home Depot and Lowe's are experiencing reduced demand for larger home improvement projects due to consumer uncertainty, while Sally Beauty Holdings reports shoppers are leaning towards value, especially among low-income consumers [6] - Retailers are ramping up promotional efforts to attract cautious consumers, emphasizing affordability and value in their marketing strategies [7]