Retail Reopenings: Why Aren't Consumers Spending?
When quarantines and closures first started, many consumers complained that they were craving their 'normal', that closures really cramped their shopping style, and that product availability was a primary concern.
Now, as retailers get the go-ahead to reopen, consumers aren't clamoring to visit or spend: foot traffic is down in every category, basket size (how much a consumer buys per visit) is also down, and overall spending is down approximately 18% overall (including online sales). Images of people lined up for hours outside of HomeSense are few and far between, and do not tell the true reality, which is corroborated by retail revenues reported as well as the research: 62% of Canadians, 65% of Americans surveyed said they'd be waiting to revisit bricks-n-mortar retailers, for fear of covid contagion, especially in discretionary categories like clothes, shoes, or jewelry.
Dr. Brynn & Andrea Bain discuss What retailers are experiencing; Why consumers don't seem to be spending; and as economy reopenings proceed what to expect for back-to-school shopping, historically a high-point for retail spending annually:
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