INSIGHTS ON CHANGING CONSUMER BEHAVIOR
The daily US consumer spend index shows the percentage change in spending on a daily basis, compared to consumer spending in 2019.
FIRST REPORT: MAY 6, 2020
Our seventh installment of the FIRST report is notable for one reason – the Fast Food segment has seen its first week of positive year over year growth since this crisis began, growing 2% and significantly outpacing the overall restaurant industry. The Discount and Home Supply categories continue to improve, as more time at home and stimulus checks seem to be having an impact. Amazon continues to stay on a torrid growth trajectory, and the Lodging sector appeared to show some signs of improvement, with year-over-year declines decelerating.
Since the week of Apr 13, there has been steady improvement in the Discount/Wholesale category. All three categories saw growth in spending in the week ending May 3, with the subcategory of Discount Store seeing the strongest growth at 70% year-over-year.
Spending in the Home Supply category also had a strong week, with year-over-year growth exceeding 80% during the week of May 3. Stimulus checks, more time at home, and better weather is clearly having a positive impact here.
While both retail giants saw their growth rates improve during the week of May 3, Amazon continues to outpace its rival Walmart, growing 108% year-over-year vs Walmart’s 30%. Amazon’s ability to meet the demand it is seeing, given its size, is impressive to say the least.
This was a notable week for the Restaurant category, as spending in the fast food segment turned positive for the first time since before the crisis, growing 2% in the week ending May 3. The overall segment also improved during the week, but the improvement week to week was lower than the fast food segment’s improvement, suggesting that spending in the sit-down category actually worsened in the week, despite some states deciding to open up.
Spending in the Video Game segment surged again in the week ending May 3, growing 96% year-over-year. This segment has been the clear winner during this otherwise terrible period for the economy.
While spending in the travel segment continues to be negative, we saw the first notable week-to-week improvement in the lodging sector, with the year-over-year spending decline hitting 60% in the week ending May 3, up from a 72% decline in the prior week. It’s probably still too early to call this a reversal of fortune, but it is a glimmer of hope. The Air Travel segment is still in dire straits.
Spending in the Drug Store/Pharmacy category improved in the week ending May 3, growing 11% year-over-year, after being negative in the prior week. It appears that this category is more closely approaching its longer-term trend prior to the crisis.
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FIRST REPORT ARCHIVE