In a happy turn of events for the retail industry, U.S. retail sales rose nearly 18% month-over-month in May 2020, according to the U.S. Department of Commerce. While sales have not yet returned to pre-lockdown levels, May’s sales figures reveal that the industry is on a solid path to recovery.
One reason for the strong consumer spending may be that some consumers are in a better financial position than ever, suggests the Wall Street Journal. Consumers who were fortunate enough to keep their jobs have been forced to save by staying at home. Commercial bank deposit figures show that personal savings have been rising over the last several months both in the U.S. and around the world. Rather than spending on vacations and experiences, consumers are funneling their savings into buying more things.
However, not all retail categories are benefiting equally. The Wall Street Journal notes that home improvement retailers and furniture retailers are seeing strong sales, while apparel and jewelry store sales are lagging.
Ultimately, retailers need to pay close attention to how their customer base is evolving as the economic recovery unfolds. Understanding trends at the market level and benchmarking against industry averages can provide important insights to guide business decisions at this critical time.
Need help understanding what’s happening to your customer base and markets? We can help. Our Consumer Impact Dashboard and other customer analytics solutions can provide you with the insights you need to position your company for success in the coming months.