The current state of consumer spending
24 Aug 2020
With the ongoing pandemic, retailers may need to take a more flexible approach in order to avoid dramatic discounting, damaging margins and credibility.
Edited investigates how prices for market sectors and key categories have shifted during Covid-19.
According to economic tracker Track The Recovery, employment rates declined by 6.8 percent compared to January in the US as of June 27. Total spending in the US also decreased by 8 percent as of June 27 compared to January, with apparel down nearly 11 percent as of August 2.
Due to Covid-19, the Office of National Statistics (ONS) said that 650,000 workers in this UK have become unemployed. Even with stores reopening, more than half of sales are online, according to the British Retail Consortium.
The luxury market
The average price of luxury handbags market-wide sat mainly higher than in 2019. In July, the average prices of the US and UK sites saw a 12 percent and 18 percent increase, respectively.
Luxury footwear has experienced an average price drop of 2 percent in the US and 0.8 percent in the UK. Gucci stands out with the most significant year-over-year (YoY) decrease with an average price point of 773.50 dollars versus 885.74 dollars in 2019 on its US site and 733.62 pounds versus 811.33 pounds for its UK site.
Sleepwear prices have gone up
Due to Covid-19, consumers have prioritised comfort and self-care, giving retailers the chance to increase the prices. The sleepwear market has risen 7 percent and according to Allied Market Research the forecasted global value of the market is expected to be 18 million dollars by 2027.
Activewear is becoming more accessible
Despite the increase in home workouts, the pricing for sports bras and leggings have remained stable while men’s performance sneakers have seen a slight price decrease of 2 percent from 17 February to 17 August.
Is loungewear on the rise or decline?
Hoodies, sweatshorts and bathrobes have all seen an increase in pricing across the mass market for demand as consumer interest in comfort continues to grow.
However, due to the saturated market of women’s tracksuit bottoms, there was a decline of 5 percent.
Photo credit: Louis Vuitton courtesy of Edited