Navigating Consumer Pullbacks in Southern Delaware & DC

In the last 12 months since taking my marketing business full-time, I’ve helped clients generate more than $7 million in sales across my portfolio, with a cumulative average growth rate of roughly 8%. While my clients have fared well over the last year, the sentiment among the broader business ecosystem tells a different story: consumers are spending less, and the pinch is being felt across industries in Southern Delaware and Washington, DC.

At a high level, it is no surprise that consumer spending has softened. According to the Bureau of Economic Analysis, in the first quarter of 2025 the states surrounding Delaware and D.C. experienced GDP changes ranging from -0.5% to 0.3%. Maryland and Virginia contracted 0.5%, DC and Delaware saw no change, and Pennsylvania grew at 0.3%.

Whether it’s policy uncertainty prompting households to save more or government layoffs reducing disposable income, business owners are reporting softer spending with varying degrees of impact across industries. Hotels in Rehoboth Beach have lowered prices to fill rooms, retail sales are down as shoppers curb discretionary spending, and people are dining out less. KPMG has reported that consumers plan to spend 7% less at restaurants, and McKinsey notes that households expect to reduce spending in discretionary categories overall.

What does this look like on the ground? In Rehoboth, instead of tourists shopping locally for beachwear or goods, many are arriving with items purchased online from lower-cost retailers like Amazon - consistent with the company’s resilient retail performance over the past year. Nationally, hotel prices are down 4.8% and airline revenues are down 4%, and Rehoboth has experienced similar pricing pressures. Despite this, Rehoboth tourism demand has remained relatively resilient, and while many business owners are observing sales declines, they are not as dramatic as in other parts of the country.

I am delighted to see my clients growing through this uncertain period and wish everyone the best as we face these challenging times. I’ve worked with my clients to lay out prudent strategies designed to capture market share and make up for lower consumer spending - and they’ve worked! Using a suite of tools - including calibrating our offerings, digital advertising, email marketing, and social media to name a few- we’ve been able to navigate this period with grace and hope to continue this success through 2026.