U.S. consumers continued to spend through the holiday season despite weakening confidence in the economy, but value-driven promotions played a decisive role in keeping shoppers engaged, according to Tanger Outlets CEO Stephen Yalof.
Speaking on CNBC on Tuesday, Yalof said retailers across Tanger’s outlet portfolio leaned heavily on discounts and promotions to meet cautious consumers where they are.
“Retailers are discounting to meet the consumer, and the consumer is responding by shopping,” Yalof said.
He noted that holiday traffic remained strong throughout November and December, with outlet centers seeing full parking lots and consistent footfall despite broader concerns around inflation and tariffs.
Tanger’s model, Yalof explained, centers on offering access to premium brands at prices that feel compelling on a daily basis. That value proposition helped sustain activity even as shoppers became more selective with discretionary spending.
“Customers are looking to come into a space where they can buy products at a price point they’re comfortable with, because they know it’s value priced every day,” he said.
Recent data suggests that spending patterns have outpaced consumer sentiment. Preliminary figures from Visa show U.S. retail spending rose 4.2% year over year during the holiday season before adjusting for inflation. The report, which tracks payments beginning Nov. 1, found in-store purchases accounted for roughly 73% of total spending, while online sales rose 7.8% from the previous year.
At the same time, confidence indicators remain under pressure. The Conference Board reported that its consumer confidence index fell to 89.1 in December, down from an upwardly revised 92.9 in November, as Americans grew more concerned about persistently high prices and the impact of President Donald Trump’s tariff policies.
Additional surveys point to continued caution. The latest CNBC All-America Economic Survey found that 41% of Americans planned to spend less this holiday season, reflecting how inflation continues to shape purchasing decisions.
Despite these headwinds, Yalof said retailers appear optimistic about demand heading into 2026. Brands, he added, are increasingly focused on expanding their physical retail presence as department stores consolidate.
“Retailers want stores,” Yalof said. “They love bricks and mortar.”
