How Lease-to-Own Can Redefine the New Shape of Consumer Spending

08/18/25

There’s a growing sense among retailers that consumer spending is tightening.[1] While foot traffic appeared to be trending downward across many categories in February 2025 [2], consumer engagement remains active in various retail industries, both in-store [3] and online [4]. 

To stay competitive as consumers cut back on non-essentials and prioritize affordability, retailers must adjust their customer experience and revenue strategies. Many retailers are exploring ways to support transactions with alternatives to credit and financing. Lease-to-own (LTO) is one approach that enables consumers to complete transactions when their budgets are limited. [5] 

What Spending Signals Are Telling Us 

It’s unclear whether the shifts in consumer spending behavior are temporary or part of a longer trend. Still, recent analysis indicates uneven spending patterns, influenced by differences in income and savings among households. [6] Also, sentiment scores, such as the University of Michigan’s Consumer Sentiment Index, remained subdued in July 2025, hovering around 61.7, highlighting continued caution and low confidence in discretionary spending. [7] 

Understanding the Consumer Behind the Trend 

Many consumers are navigating the marketplace without the help to get what they need: 

  • 21 million who are considered unscorable due to insufficient or limited credit history [8] 
  • 28 million who are credit-invisible, meaning they have no credit history with the nationwide credit bureaus [8] 
  • 57 million fall into the subprime category [9] 

These are consumers who benefit most from opportunities to shop without using credit*. (Not a credit transaction. Approval will require review of consumer reports.) Reaching them requires rethinking what alternatives to credit and financing look like. [5] 

 

LTO as a Practical Sales Driver 

LTO, as a retail solution, supports transactions that might otherwise stall at checkout for various reasons. Once they're approved, it allows consumers to lease merchandise with the option to own it later*. [5] 

For retailers, the payoff is clear: 

For transactions between $300 and $5,000, LTO provides a simpler way to complete transactions, especially when integrated directly into the consumer experience. 

  • Fast: quick decisions, minimal wait time 
  • Straightforward: a few steps to apply 
  • Non-invasive: doesn’t require extensive information to apply 

Many retailers see benefits from each completed LTO transaction, including higher conversion rates and improved consumer retention.  

A Strategic Response to Lasting Change 

The conditions shaping today’s consumer mindset and spending behavior are likely to continue shifting. At the same time, ownership is being redefined [5], and access is becoming a new standard of value. 

Retailers who act on this shift can: 

Enterprise retailers have a choice: maintain their current strategies and risk missing demand or offer access with LTO that turns intent into action. 

Connect with Acima today to discover how LTO can enhance your current revenue strategies and help address your consumers' purchasing needs. 

The content of this article is provided solely for general interest and should not be relied upon or construed as any form of advice, whether legal, financial, or otherwise. Receipt or use of this information does not create any sort of relationship between us. 

 

Sources: 

  1. Alvarez & Marsal. Consumer Sentiment Survey Spring 2025 
  2. Colliers. US retailer foot traffic analysis, February 2025 
  3. Cushman & Wakefield. US shopping center market report 
  4. Statista. Number of digital buyers in the US 
  5. Acima. Inclusive shopping options white paper 
  6. Morgan Stanley. US consumer spending trends 2025 
  7. University of Michigan. Surveys of Consumers 
  8. Experian. Expanded data and analytics improve credit access 
  9. Oliver Wyman. Financial inclusion and access to credit