The New Consumer
Is In-Person Spending Back? BY J AC Q U E L I N E B A R B A
U.S. consumers are spending on in-person experiences again, but the pullback on general merchandise spending that is expected to coincide with it has not played out — at least not yet. Experiential spending reached 91% of 2019 levels at the end of 2021, but general merchandise retail spending remained elevated at 19% above pre-pandemic levels, according to a report from The NPD Group. However, some diminished demand has been evident, with retail unit sales declining in nine of the first 10 weeks of 2022, compared to last year. However, revenue rose more than 5% in four of the same 10 weeks. “There is a cautious optimism in the air as consumers embrace some newfound freedom from restrictions while not yet letting go of their pandemic ways,” said Marshal Cohen, chief retail industry advisor for NPD, in a news release on the report findings. “If the pandemic’s trajectory continues moving toward an endemic status, people are likely to begin spending very differently.” While consumers appear to be emerging from the pandemic lifestyle, they’re not yet emerging from pandemic-era spending. Accessories, beauty, apparel and other categories are getting a boost from experiences, as consumers return to more in-person activities. However, even as consumers become less focused on at-home needs than they were over the past two years, sales of the products most popular through the pandemic continue
May/June 2022
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to exceed pre-pandemic performance, including toys, small appliances, housewares and technology.
REINVENTED IN-STORE EXPERIENCE Eighty-five percent of consumers will do more in-store shopping in 2022 than 2021 — up from the 79% who reported increased visits last year — according to consumer survey results from ChaseDesign. The design firm fielded an online survey through its proprietary research platform, mPulse, among 1,000 consumers between the ages of 25-54, during March 2022. Respondents were screened to be the primary or secondary shopper in their households. Factors driving this return to physical locations included having the ability to choose products in person, seeing what’s new and taking advantage of the store staff’s expertise. At the same time, online ordering volumes and services like buy online, pick up in-store (BOPIS) are slipping from their 2021 highs, which doubles down on the importance of a vibrant retail offering, according to survey findings. ChaseDesign’s analysis of its new research concluded that this means retailers need to make digital investments in their stores to attract and retain that returning foot traffic. “For retailers, this means maintaining and even boosting their expertise in e-commerce and omnichannel in the context of their physical stores,” Joe Lampertius,
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