Banks should plan to adjust their products to meet changing customer needs and sentiment, while considering changing financial regulation.

August retail sales data points to consumers’ continued resilience: While spending is healthy, shoppers remain deal-focused as they look ahead to the holiday season.

Retailers faced no shortage of challenges in the first half of the year as elevated interest rates, the lingering effects of inflation, and a loosening labor market weighed on consumer spending. In this report, we’ll contextualize our coverage of retailers’ Q2 revenues across four key verticals: department stores, home, mass merchants, and off-price.

The US consumer is holding up, according to Walmart: The retailer raised its full-year outlook after solid spending from value-seeking shoppers drove it to a Q2 earnings beat—although it warned of uncertainty heading into election season.

McDonald’s sales fell for the first time since 2020: The company’s overreliance on price hikes led it to lose its “value leadership” positioning. Reestablishing that role is the key to its turnaround.

Dynamic pricing plans risk alienating price-sensitive consumers: The mere possibility of variable prices is triggering anxiety over inflation and hurting trust in retailers

Consumers don’t feel great, but they’re still spending: Retail sales blew past expectations in June despite subdued confidence among lower-income households.

Consumers spend cautiously as inflation perceptions, higher debt payments hurt confidence: But we expect retail sales growth to be healthy as buying power recovers.

Here’s what you need to know about the NSS score, along with best practices on how to implement it.

The housing market continues to flounder: As long as it remains hard for consumers to buy a home, brands and retailers tied to housing will likely struggle.

Meta’s latest AI advertising rollout reveals a significant shift: Free, broad access to AI creative will help win favor with brands, but ethical quandaries are unresolved.

Retail job cuts pile up: Even as Macy’s, Wayfair, and Stitch Fix cut staff, other retailers have good reason to feel optimistic about 2024.

Credit losses are climbing, credit conditions are tightening, and consumer sentiment is on the decline

To comply with global banking rules set by the Basel Committee, some banks may need to up their reserves by 20%.

Several indicators suggest consumer spending remains strong: Consumer sentiment hit a 13-month high in February and retail sales appeared to pick up in January.

Saving money is a priority for consumers in 2023: Shoppers plan to cut back on unnecessary purchases in anticipation of difficult economic circumstances.

Consumers kept pace with inflation in September: But there are signs that they may not be able to do so much longer.

Rising prices aren’t cooling consumer demand: Even with consumer confidence ticking up and wages increasing, there could be storm clouds ahead.

Consumer sentiment is ticking up as inflation slows: While that’s good news for most retailers as the holidays near, rising interest rates could pose challenges.

Soaring food prices are causing consumers to rethink their spending: Consumers are changing both where and how they shop for groceries, as well as what else they buy.