Consumption of non-essential goods continues to decline, and Americans are becoming more and more "stingy"!

According to Circana, U.S. non-essential goods revenue fell 7% year-on-year in March, and unit sales fell 8%, twice the average monthly decline in January and February. In the last three weeks of March, non-essential goods sales fell even more.

“Consumers are starting to spend less on discretionary and essential items and are becoming more consistent in their purchasing behavior,” said Marshal Cohen, chief retail industry consultant at Circana.

A report from Circana shows that American families with children are more inclined to cut footwear spending than families without children because parents are giving up buying shoes for themselves. Currently, children's shoes are the fastest growing segment of the US footwear market.

In addition, due to rising prices, American consumers spent more on children's shoes. On average, the amount spent by each buyer increased by 9% year-on-year.

Circana pointed out that in order to boost consumption, retailers must speed up the development of new products. Due to the blockade caused by the epidemic, many retailers focused on adjusting their businesses, solving supply chain problems and clearing inventory, thus putting the development of new products on hold.

According to Circana, before the pandemic (at the end of 2019), new products accounted for more than 5% of the entire US retail market. But by the end of 2022, this figure was less than 2%.

"One of the biggest harms caused by the epidemic to the retail industry is that consumers cannot get new and upgraded products. And now, economic uncertainty has put more pressure on consumers' purchasing interest. Manufacturers and retailers need to communicate their value to consumers and prove their value to avoid a vicious cycle in the future," Circana emphasized.

Editor ✎ Nicole/

Disclaimer: This article is copyrighted and may not be reproduced without permission.