Rising consumer optimism generally has a positive impact on spending. But now we are seeing this divergence between the decline in real retail spending and the reported optimism among US consumers. While rising optimism can be a positive indicator for future spending, it doesn't necessarily guarantee immediate spending growth or rule out the possibility of consumers becoming more cautious in the near term.
If consumers are feeling optimistic despite the decline in retail spending, I see this as an indication that they have confidence in the overall economy or expect improvements in the near future. This positive sentiment might translate into increased spending over time as consumers become more willing to make purchases.
However, it's also possible that consumers could choose to be more cautious and tighten their spending in response to the decline in retail spending. They may prioritize saving or reducing debt rather than engaging in immediate consumption. This is where we tend to see growth in Buy Now Pay Later model - shoppers prioritizing reducing their debt while being able to spread out payments interest-free, all while building credit.
Charlie Youakim
CEO and cofounder, Sezzle
![](/retailtoday/executive_roundtable_q2_2023/consumeroptimism/691092/sezzle.320_0_1.jpg)
Consumers:
Optimistic yet Cautious
Shahin Kohan, a seasoned and trusted technologist, businessman and advisor, is on a mission to catalyze the potential of people and organizations through the power of technology. Three decades of experience working across industries has granted him the knowledge, resources and perspective to effectively create solutions to problems of any size, and ultimately help others make their impact on the world. His companies, including AIMS360, the leader of fashion technology, and Kumo Technology, a pioneering workflow innovation and software development company focused on the private lending industry, allow him to achieve that goal. A proud American immigrant raised amidst the struggle of Tehran, Iran in the 70s, his inspiring journey of possibility, persistence and passion fuels his deep appreciation and endeavor to make technology more accessible, human and powerful for all.