Taking the pulse of consumers Ananya Mariam Rajesh
Americans are getting pickier, but they are still spending on hot items
Investors are scouring credit card spending patterns to size up which, if any, trends could give specialty retailers a boost in the summer months. Recent quarterly results from retailers show shoppers are selectively buying nonessential, nice-to-have products – forgoing electronics, but not being shy about plunking down cash on those wide-legged jeans they’ve been coveting. That’s been good for sales of in-vogue products such as Birkenstock’s shoes, Abercrombie & Fitch’s jeans and Vuori’s athleisure clothing – and less so for products from Home Depot and Best Buy.
“Consumers are being choosier about where and when they spend. They are seemingly willing to splurge on items that are not inexpensive, be (it) a pair of Hokas or Birkenstocks,” said Zak Stambor, an analyst at research firm Emarketer.
Demand for on-trend products boosted sales growth in clothing by 3.2%, sports goods by 1.9% and footwear by 0.4% in the first quarter of 2024, compared to a year earlier, according to market research firm GlobalData.
But big-ticket items, particularly related to living spaces, fell off consumers’ shopping lists. Sales of electronics fell 1.9% for the quarter, while homeware purchases dropped 4.2% during the first quarter, versus the year earlier period.
“Outdoor grills, patio sets …televisions, couches, beds, it’s all been a bit challenging as of late,” Telsey Advisory Group analyst Joseph Feldman said.
Credit card data is offering investors clues on which products and brands were hot or not as summer got underway.