U.S. consumers are sending out mixed signals on their spending habits and financial self-assessments, according to management consulting firm Kearney, with over 50% saying they’re living check to check, even as retail sales rise, inflation is down and mall traffic is up. The firm also found consumers views are often at odds with the kinds of fixed categorizations endemic to the retail industry.
Economic signals are a bit of a mixed bag heading into the important back-to-school and back-to-college shopping season, an economist with the National Retail Federation said, with inflation easing but spending on services and essential items still impacting spending on goods. In spite of this unsettled macro picture, the NRF projects record spending on K-12 and college.
Online prices fell 2.6% in June compared to a year ago, the largest drop since May 2020 and slightly more than in May, according to the latest Adobe Digital Price Index, as overall inflation has moderated but the cost of consumer goods is still far above pre-pandemic levels. The largest year-over-year price drops were in consumer electronics (-12.9%), computers, (-16.9%) and appliances (-8.3%).
With a month of 2023 behind us, everyone in retail is wondering how consumer trends will play out this year in the face of ongoing (but lessening) inflation and a tricky macroeconomic picture, to say the least. To get a better understanding of the months ahead, we spoke with Sarah Wyeth, Retail Sector Lead for S&P Global Ratings.
It’s always something. Just when direct-to-customer merchants think they have a handle on their profit margins, something comes along to throw it into frenzy.
Even though merchants are gearing up for the additional hiring of seasonal employees this holiday, a new report has found that “shaky” consumer confidence and an increased in efficiencies in the retail space could prevent seasonal hiring from hitting the great heights it did in 2012.