Economic Pressures Redefine U.S. Retail and Dining in 2024

Shoppers and diners shifted toward value-driven options, driving bankruptcies and reshaping market dynamics.

High housing and food costs pushed consumers to prioritize affordability, favoring discount retailers like Walmart and Aldi over pricier alternatives.
Fast-casual chains and value-driven offerings, such as McDonald’s $5 meal deal, outperformed traditional sit-down restaurants, with some legacy chains filing for bankruptcy.
Retail bankruptcies surged to 48 in 2024, nearly doubling the previous year, while 22 restaurant chains also sought bankruptcy protection, the highest number since 2020.
Trends like wide-leg jeans boosted sales for brands across price points, while demand for big-ticket home items and department stores declined significantly.
Amazon and Walmart capitalized on shifting consumer behavior with low-cost initiatives and expanded online services, though challenges like labor disputes and tariffs loom for 2025.