In beauty circles, the Lipstick Effect, also called the Lipstick Index, is claimed to be the category’s leading economic indicator. The concept is that in times of a recession and other economic stresses, women will indulge in discretionary purchases that provide an emotional uplift without breaking the budget. Lipstick fits the bill. While the lipstick […]
Archive | Consumer Spending
RSS feed for this sectionRetail Reset Coming as Inflation Takes Its Toll on Shoppers
It’s been almost two years to the day since Covid threw retailers and shoppers for a loop. Forced to adapt, both retailers and the shoppers responded remarkably well and as the threat of the pandemic diminished, retail’s 2021 recovery was remarkable as well. Retail sales advanced 14% and it seemed things were returning to normal […]
It’ll Be a ‘Do or Die’ Holiday for Retailers with Consumers Spending 7% Less
With consumers feeling financial stress, a new Deloitte survey finds holiday spending will be off 7%. On a positive note, consumers will spend less traveling and dining out and will indulge in more self-gifting.
How Consumer Spending Fared So Far Through 2020: Not Well
By now, you’ve heard the news that the GDP contracted 32.9% in the second quarter on an annualized seasonally and inflation-adjusted basis, following a 5% decline in first quarter. Personal consumption makes up over two-thirds of the GDP and it dropped even more precipitously, down 34.6% on an annualized basis. This quarter marks the economy’s […]