Miscellaneous store retailers
Total Sector Spending
Overall spending trends across an industry sector
What's the story behind the data?
Spending in the Miscellaneous Store Retailers sector, which includes non-core specialty retail like pet supply chains (e.g., Petco, PetSmart), mailing services (e.g., USPS), craft stores (e.g., Michaels), and curated online retailers (e.g., Chewy), surged in late summer 2024 before softening considerably in May and June 2025. Facteus transactional data indicates an especially steep growth spike in August 2024 (+18% YoY) followed by a cooling trend with slight contractions beginning in late spring.
This pattern aligns broadly with macroeconomic seasonality tied to back-to-school, early holiday prep, and seasonal pet adoption trends. However, our data shows that spending in June 2025 fell more sharply than expected (-6% YoY), despite resilient retail sales reported in aggregate by government sources. This suggests weakness among niche retailers or a potential substitution effect away from specialty stores toward mass merchants.
Demographically, this sector is contracting across all income groups and generations, with Baby Boomers and lower-income households showing the steepest declines. That said, brand-specific strength in pet categories (Chewy, PetSmart, Petco) indicates consumers are still investing in pet-related purchases, albeit selectively. The USPS also maintains significant category share, but AOVs are flat or declining, indicating smaller basket sizes per transaction.
Implications by Audience
FP&A / Strategy Teams
- Plan for continued softness into Q3 2025. The sector’s post-COVID resurgence appears to have plateaued.
- Monitor mix shifts: USPS is losing share to Chewy and PetSmart, and craft/specialty brands are vulnerable to discretionary cutbacks.
- Rationalize long tail SKU strategies—spending dips suggest lower tolerance for non-essential or infrequent purchases.
Marketing and Brand Teams
- Emphasize replenishment campaigns and subscription models (e.g., Chewy autoship) to drive frequency and retention.
- Messaging should pivot toward practicality and value in specialty segments—particularly for Millennial and Gen X buyers who show the least contraction.
- Re-evaluate Baby Boomer targeting—this cohort is pulling back hardest.
Investors
- Favor retailers with loyalty infrastructure and eCommerce scale (e.g., Chewy).
- Watch closely for USPS volume trends—they remain a bellwether for microbusiness and eCommerce enablement.
- Monitor cross-category leakage to general merchandise retailers offering lower prices or convenience bundling.
Policy Makers
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Top Brands by Market Share
Leading brands ranked by market share within sector
Trends + Insights
- Total Sector Spending
Spending surged in August (+18% YoY), likely driven by pet adoption season and early Q4 inventory prep. But June marked the second consecutive month of contraction (-6.1%), pointing to discretionary fatigue. This confirms broader softness across specialty retail that doesn’t benefit from essential or bundled value propositions. - Sector Spending by Income
Spending is down across all income brackets, with households under $50K and over $150K showing the steepest declines. The lower-income pullback is likely due to economic pressure. High-income softness may reflect selective premium spend redirection toward travel or services rather than goods. - Sector Spending by Generation
All generations show contraction, but Baby Boomers’ spending is down nearly 10% YoY—double that of Millennials. Gen X is also down sharply. Chewy and USPS are partially offsetting this with stable AOVs and market share, but the broader cohort disengagement raises questions for long-term loyalty among older segments. - Top Brands by Market Share
USPS and Chewy dominate category share, but with diverging trends: Chewy gained share from USPS in the first half of 2025. PetSmart and Petco are neck-and-neck in mid-tier share, while Staples, Michaels, and Bath & Body Works remain fragmented players. USPS’s share dip reflects both competitive pressure and possibly lighter business shipping volumes. - Top Brands by AOV
Chewy leads with a consistently high AOV (~$80), reflecting bulk buying and autoship models. PetSmart and Petco remain stable in the $50 range. USPS shows erratic AOV, possibly tied to B2B variability. Bath & Body Works trails, suggesting lighter, more frequent purchases—potentially driven by seasonal gifting or promotions.
Top Brands by AOV
Leading brands ranked by average order value within sector
This macro sector analysis provides detailed insights into economic trends and consumer behavior patterns. The visualizations below are derived from real-world transaction data and economic indicators.
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Sector Spending by Income Bracket
Industry sector spending patterns by household income level
Sector Spending by Generation
Industry sector spending patterns by generational cohort
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