Consumer Shopping Behavior Changing As Pandemic Recedes
“Some experiential spending is already coming back strong, as consumers do more.”
Discretionary retail sales revenue in the US increased by 17% over the first half of the year and rose 18% over 2019 levels, suggesting that the uptick in consumer spending predicted by many experts post-pandemic is beginning to materialize.
The figures—outlined by The NPD Group—demonstrates that consumer behavior is beginning to change following the COVID-19 crisis. Sports equipment, home products, consumer tech, and toys all posted strong sales numbers in 2020. And spending in the categories relating to home-based work, education, fitness, entertaining, and healthy home—sectors NPD dubbed “lifestyle pillars”—will continue to drive growth.
“Some experiential spending is already coming back strong, as consumers do more, dress up more, place more emphasis on appearance and health, and start to spend more on tangible products related to travel and other experiences,” said Marshal Cohen, chief retail industry advisor for NPD. “However, as this pent-up demand works itself out in the coming months, we can also expect those rising sales to throttle back a bit in apparel, footwear, and other categories.”
The cadence of retail is also changing, Cohen said. The shift to “buying when it’s needed” could also continue to disrupt normal shopping patterns, particularly for back-to-school.
During the pandemic, “consumers began to shop mainly for their immediate situations, rather than thinking about what they might need down the road or for the season ahead,” Cohen said. “We can expect some of that behavior to continue, even as more stores reopen and consumers get comfortable shopping in-person again, and retailers will need to adjust their seasonal planning in order to win the purchase.”
Finally, e-commerce will continue to be king, particularly for categories like housewares and sports equipment.
“When it comes to shopping, it’s apparent now that the consumer does not recognize any lines of demarcation at all,” said Matt Powell, senior sports industry advisor for NPD. “Shopping is all one thing to them now, no matter where it happens. The faster retailers can recognize and accept that premise, the better—and more profitable—they will become.”