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Many retailers are predicting that consumer spending patterns in 2024 could be similar to 2023鈥攑ulling back on discretionary categories and sometimes essentials like groceries. So far, discount and dollar stores have benefited from tightened consumer spending, but that success isn鈥檛 guaranteed in the new year. Here鈥檚 how three low-price retailers are planning to appeal to consumers and keep sales up in the months ahead.

Macy鈥檚, Neiman Marcus, Hudson鈥檚 Bay rethink their strategies as department store sales fall: Tactics include using data science to predict trends and improve pricing strategy, doubling down on luxury, and maximizing store appeal with experiential concepts.

US retail sales excluding automotive rose 8.8% year-over-year (YoY) in January, with retail ecommerce sales growing 8.4% YoY, per Mastercard SpendingPulse, which is based on aggregate sales activity in the Mastercard payments network, along with survey-based estimates for other payment methods such as cash and check.

Consumers have shifted more their spending to dining out: But while restaurant industry sales are expected to rise 6.4% this year, the industry faces several challenges.

Discount stores are on an expansion tear: Amid growing sales, Dollar General, Five Below, and Dollar Tree plan to open more stores this year.

Travel accessory sales rose 16% YoY, while print unit sales of travel books increased 6% YoY, per NPD. The headwinds: Despite the bullish outlook, the travel industry isn鈥檛 immune to economic headwinds, including the tight labor market that鈥檚 making it difficult for airlines and hotels to attract staff and increasing operating costs.

Gen Alpha鈥檚 obsession with skincare is driving beauty sales: Younger shoppers are gravitating toward premium brands and spending more time browsing the aisles at Sephora.

Pandora A/S鈥檚 quarterly revenues beat estimates thanks in part to strong holiday and Black Friday sales of its charm bracelets and other jewelry in the US.

The news: Heavy discounting spurred sales this holiday season, with shoppers spending a record $222.1 billion online between November 1 and December 31鈥攁 4.9% increase year-over-year (YoY), per Adobe Analytics. A separate report by Mastercard SpendingPulse found a 3.1% YoY increase in holiday spending, with online sales growing nearly three times as fast (6.3% YoY) than in-store sales (up 2.2% YoY).

A report by Bernstein noted that even if GLP-1 adoption grows to 10% of the US adult population in the next five years, food sales volumes would fall by just 0.5% annually.

Early sales are pulling some holiday spending forward, but Cyber Five demand remains as strong as ever. While Cyber Five鈥檚 share of total holiday ecommerce sales dipped slightly this year to 15.8%, more shoppers opted to pull back on spending in the weeks prior to the event in order to capitalize on better deals across Thanksgiving weekend. Consumers are spending more on gifts, less on themselves.

The big takeaway: YouTube鈥檚 efforts appear aimed at grabbing a larger share of the rapidly growing social commerce market; our forecast expects US social commerce sales to grow 26.3% this year, to $67.6 billion. That growth will come from an influx of new shoppers (we expect the number of social buyers to grow 4.1% this year) and existing shoppers spending more.

碍谤辞驳别谤鈥檚 sales sag as grocery prices stabilize: That new state of play could drive the grocer to look to high-margin retail media to drive growth.

Pickup sales grew 3.2% YoY to $3.5 billion, with the share of overall sales growing to nearly 49%. Delivery sales fell 2.5% YoY, marking the second straight month that sales declined. Ship-to-home sales dropped 9.7% YoY, and now account for less than 17% of all online grocery purchases. The big takeaway: Our forecast expects US online grocery sales to grow 18.7% this year.

Walmart sees growth opportunities regardless of the macroeconomic environment: The retailer looks to boost its international sales, improve its digital presence, and expand its retail media business.

We expect US cosmetic and beauty sales to grow 7.6%: While consumers are spending more selectively, they鈥檙e still willing to splurge on their favorite items.

The home improvement market bubble has burst: Home Depot expects sales to decline this year for the first time in over a decade as consumers pull back on home-related purchases.

Amazon offers $25 flights to young adult Prime members: The perk, available for the second-straight year, is one of many ways the retailer aims to hook shoppers on Prime.

Kenvue currently accounts for 14% of skincare sales, per Circana data cited by Bloomberg, down from 23% in 2019; Neutrogena lost its crown as the top dermatologist-recommended brand to CeraVe in late 2021.

Walmart expands third-party seller features as it tries to take on Amazon: The retailer is seeing early results from its marketplace initiatives, but its share of the market will remain at just 2.2% this year compared with Amazon鈥檚 72.4%.