Tangier Yalof CEO says consumers are still spending despite the decline in confidence

American shoppers are ready to spend this holiday season — despite low consumer confidence and concern about prices — but only if the deals are there, Tangier CEO Steven Yaloff told CNBC on Tuesday.

“Retailers offer discounts to meet consumer needs, and the consumer responds by shopping,” Yaluv said on CNBC’s “Money Movers.”

Yalof said Tangier is trying to provide shoppers with access to premium brands at consistently compelling prices. Retailers across the company’s outlet portfolio leaned heavily into holiday promotions, which helped maintain traffic and sales.

Customers are “looking to get into a space where they can buy products at full price, maybe above the price point they want to spend, but they can embrace that price point because they know it’s value priced every day,” Yalof said.

He described holiday traffic at Tangier outlet centers as strong, citing full parking lots and constant activity during the months of November and December.

“I feel like the customer is very flexible,” he said. “They are looking to spend.”

Yalof’s comments come in the wake of new data showing that consumers are spending more than their confidence levels would suggest.

US retail spending rose 4.2% year over year during the holiday season, before adjusting for inflation, according to preliminary data from Visa Released Tuesday.

The report, which tracks payments activity as of Nov. 1, found that in-store shopping represented 73% of spending, while online sales led the growth, rising 7.8% from the previous year.

Meanwhile, sentiment remains weak.

Consumer confidence declined in December as Americans grew concerned about continued high prices and the impact of sweeping tariffs imposed by President Donald Trump.

The Conference Board reported Tuesday that its consumer confidence index fell 3.8 points to 89.1, down from an upwardly revised 92.9 in November and approaching the 85.7 level seen in April, when the administration imposed broad import tariffs on U.S. trading partners.

Likewise, CNBC’s latest Pan American Economic Survey, released last week, found that 41% of Americans planned to spend less this holiday season, up 6 points from last year, as higher prices continue to shape where and how shoppers spend.

Looking ahead, Yaluv said retailers appear confident about demand in 2026.

“Retailers want stores. They like brick and mortar,” Yalof said, adding that brands are increasingly looking to control their physical retail presence as department stores continue to consolidate.