Covid-19 has unequivocally altered the fashion and retail industries, yet little has been said about spending habits.
Global lockdowns have meant consumers are limited to spend on experiences, like travel, dining and cultural discovery. A new study by Deloitte shows the experience trend has been disrupted, with retailers rethinking their business strategies.
Average U.S. household spending this holiday season is expected to decrease 7 percent from 2019, with a sharp 34 percent drop in travel spending accounting for most of the decrease, according to Rod Sides, a Deloitte vice chairman
“We’re seeing a shift in terms of what people are buying,” Sides told Bloomberg. “Folks are focused on the home and a little more decorating. Destination travel isn’t there like it has been in the past.”
With experience spending on hold for the foreseeable future, fashion retailers could benefit this Christmas from gift giving and holiday essentials. Even if consumers are replacing wardrobes less frequently, there is buoyancy in a change of season and end of year celebrations.
“With less spending on personal services such as travel and entertainment outside the home, some of that money is shifting to retail cash registers,” chief economist at the National Retail Federation, Jack Kleinhenz, said in a statement.
Article source Bloomberg
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