US consumers to increase retail spending by 9% this summer: Report

For the first time in seven months, the percentage of Americans earning less money than before the pandemic fell below 30 per cent (11 per cent make more money; 60 per cent make the same). Notably, consumers plan to spend 12 per cent more on sporting goods and 9 per cent more on apparel and footwear, according to the BOXpoll report by Pitney Bowes Inc, a global technology company that provides commerce solutions in the areas of e-commerce, shipping, mailing and financial services.

Leading this trend are the younger generations, whose plans for summer spending are significantly greater when compared with Gen Xers and Baby Boomers, with Gen Z and Millennials spending approximately 15 per cent more on average across all categories. In particular, Gen Z and Millennials are leading other generations when it comes to sporting goods. Older consumers trend toward spending more cautiously, with Gen X planning to spend 8 per cent more than last summer and Boomers, 4 per cent more, across all categories.

Urban dwellers will spend significantly more (17 per cent) than consumers in suburban and rural areas (5 per cent and 8 per cent, respectively). Parents plan to spend about three times more than those without children year over year (15 per cent vs. 5 per cent), said the report.

Mid-income earners plan a higher increase in spending (12 per cent) compared with lower- and higher-income earners (5 per cent and 11 per cent, respectively). The report added that shoppers in the northeast (13 per cent) and west (10 per cent) planned higher spending increases this summer than those in the midwest (6 per cent) and south (8 per cent).

The report found little difference in the spending plans of consumers who have been, or plan to be vaccinated (9 per cent increase in spending), compared to those who do not plan to get the vaccine (8 per cent increase).

“Pitney Bowes BOXpoll respondents tell us they plan to spend more on products this summer versus last. This is encouraging and hopeful news for retailers, both because product sales typically experience a decline from spring to summer, and because y-o-y product sales were surprisingly strong last summer too,” said Gregg Zegras, EVP and president, global e-commerce, Pitney Bowes.

According to US department of commerce statistics, US retail sales, excluding autos, gas, food and beverage services and grocery stores, saw its highest year-over-year increase in Q3 2020 of any quarter over the past decade. Year 2020 was also the only year in the decade when the same categories of retail product sales increased from Q2 to Q3. The increase was over 9 per cent. These trends could be repeated in 2021, the report added.

BOXpoll is a weekly consumer survey on current events, culture and e-commerce logistics. Morning Consult conducts weekly polls on behalf of Pitney Bowes among a national sample of more than 2,000 online shoppers.

ALCHEMPro News Desk (KD)