INSIGHTS ON CHANGING CONSUMER BEHAVIOR
The second installment of our FIRST report brings little in the way of good news on the state of the US consumer. Most sectors we tracked during the week ending March 29 saw further declines, with some approaching 90% declines year on year, which are unprecedented in terms of our modern economy. There are bright spots, but they are largely a function of consumer behavior changes as the current reality of “social distancing” settles in.
A new addition to this week’s FIRST report is a daily spending index. This index shows the percentage change in spending on a daily basis, compared to consumer spending in 2019.
FIRST REPORT: APRIL 1, 2020
Also new to the FIRST Report this week, we will be showcasing a summary chart of the weekly percentage changes in consumer spending across the industries within the FIRST Report. Across all the industries there is a negative percentage change in consumer spending, except for the Beer, Wine and Liquor stores and the Video Games categories which continue to show positive growth over the past 3 weeks.
For the week ending March 29, spending at Variety and Discount Stores continued to fall, with both declining 13% year over year. Spending at Wholesale Clubs also declined during the week, falling 18%.
After declining 12% year over year during the week ending March 22, spending at Home Supply stores rebounded sharply the week ending March 29, growing 7% and returning to the trend of spending prior to the onset of the COVID-19 virus impact.
Spending at restaurants continued to decline in the week ending March 29, with fast food spending down 32%, better than the overall category, which declined 65% in the same period. Notably, the decline at fast-food restaurants was less than the prior week.
Consumer spending on Video Games and related services remained strong during the week ending March 29, growing 50% year over year, as “Stay-at-Home” mandates began to take hold in a larger percentage of the country.
Travel spending continues to be the hardest hit category with Airline spend down over 90% year over year and lodging spend down over 80% during the week ending March 29.
Consumer spending at Drug Store and Pharmacies fell 10% in the week ending March 29. The sharp plunge likely reflects the impact of increasing shelter in place measures in the country, and that consumers spent the prior two weeks stocking up and preparing to stay home.
Investment Intelligence from Transaction Data
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The resulting synthetic data maintains the statistical value of the original transaction while removing all personally identifiable information to keep consumer information private. To learn more visit https://enlightmint.facteus.com.
FIRST REPORT ARCHIVE