2024 Year-End Retail Winners and Losers: What Did US Consumers Value This Year?

As the year draws to a close, many analysts — both industry professionals and casual observers — take an opportunity to reflect upon the events that took place in 2024, particularly concerning the retail business.

As Bloomberg noted, despite several headwinds, the American economy is set to outperform its G7 peers in the broadest sense. The International Monetary Fund (IMF) projects that U.S. GDP will have grown by 2.8% by year’s end, with the next closest competitor, Canada, coming in at only 1.3% growth. At the bottom of the list is Germany, which saw a flat GDP that is expected to neither shrink nor grow in stature.

Within that context, which retail brands did well this year, which companies failed to keep pace, and why?

Retail Winner: Walmart Broadens Its Demographics and Sees Earnings Growth

Walmart makes the top of the list for more than one reason: It managed to attract a greater proportion of customers earning more than $100,000 per year than it had previously, broadening its traditional customer base, and it has also produced a very strong Q3 earnings report, as FOX Business detailed.

Debtwire head of legal, Sarah Foss, told FOX News Digital that the company’s traditional appeal to value-oriented consumers had been a bedrock element of the blue-and-yellow brand’s success.

“With Walmart, it’s found a way to appeal to cash-strapped consumers who are on a tight budget in a way that other retailers just have not,” Foss said.

Retail Losers: Kohl’s, Macy’s, and Target

As AP News reported, while Walmart may have seen a boom, other traditional retail department stores haven’t all fared equally well — particularly Kohl’s, Macy’s, and Target. With Walmart and Amazon taking a huge bite out of the market, and dollar stores and trendy boutique labels nipping at either extreme of the segment, it may have been difficult for these three retail chains to compete.

AP News underscored the fact that Macy’s was in the process of shuttering 150 locations (while pivoting to open 15 Bloomingdale’s stores) and that Kohl’s had reported 11 consecutive quarters of sales declines earlier this year. Target was singled out by AP for its overreliance on stocking discretionary items rather than grocery staples, with the former category seeing soft demand as consumers tightened up on spending. Target also failed to meet analyst expectations during its recent Q3 earnings report.

Retail Winners: TJX (T.J. Maxx, Marshalls, Homesense) and Costco

However, Business of Home suggested that while some department stores and iconic retail chains may have suffered, other big-box businesses thrived throughout 2024.

Notable among the crowd: TJX-led stores such as T.J. Maxx, Marshalls, and Homesense, TJX’s newest brand. Pointing out successes like Homesense building more locations and all three branches posting strong financials, Business of Home also indicated that the TJX brands were adept at growing market share in the home goods arena.

Costco also earned points for its continued strength, seeing rock-solid customer loyalty and strong sales while stocking grocery and home goods on its shelves.

Retail Loser: Party City

With Party City having recently announced the closure of all its stores early next year, it almost certainly spells the end of the once-favored party and entertainment supply brand.

“With a Party City, it’s particularly interesting in that they just exited bankruptcy last year. This would be their second Chapter 11, what we like to call Chapter 22, in less than two years,” Foss said.

Will US Consumer Preferences for Value Offerings Continue Into 2025?

While it’s impossible to guess at the future with any true certainty, it seems likely that Americans will continue to give heavy weight to value propositions as economic turbulence continues in the new year despite emerging signs of stability.

This sentiment was reinforced by AP News, which noted that Americans had already shown a strong commitment to saving their wallets any further hardship, “trading down” to ALDI and Walmart and opting to eat at home rather than splurge on dining out (at least as often).