And, for the first time in years, we can expect to celebrate Easter, Mother's Day, Father's Day, graduations, weddings with few restrictions. All promise a renewed air of celebration!
There is widespread anticipation that consumer spending will be very strong. But...spending on what? Before you place all those merchandise orders, consider this.
- We expect that the second quarter burst of consumer spending will be weighted towards services more than consumer goods. A big surprise for many.
- That is, many folks will be preferring to go places and do things, rather than buy things as they've been doing recently.
What will have appeal right now?
- Restaurant dining, inside
- Movie theaters
- Air travel, domestically and internationally
- Road trips could be huge, even with high gas prices
- Marathons and fun runs
- Even events such as trade shows and business conferences will have new found appeal
All of which may have an effect on your business. Exuberant consumer spending will likely be diverted from buying things. And this trend should be reflected in your merchandise buying plans. Some caution is warranted.
Unless you are an entertainment venue, or sell merchandise that people will need before they head off for one or more of those activities, or unless you a located in a tourist destination, a college town, or a hub for business travelers, this initial surge of consumer spending may pass you by.
All retailers have good reason to be optimistic. But as always, your innate optimism must be tempered when it comes time to place merchandise orders.
Retailers have lots of reasons to celebrate. But like always, paying close attention to the attitudes, preferences, and behaviors of your target customers will prove invaluable.