Consumer Spending Trends Leading Up to Memorial Day
New data from Consumer Edge highlights how inflation is impacting consumer spending, including positive signs for warehouse clubs and books.
Consumer Edge, a consumer insights firm, recently shared new data with the Path to Purchase Institute that analyzed consumer credit and debit spending leading up to Memorial Day on May 27.
Some key insights included:
- Consumer spending growth has died down in recent months as shoppers pull back and manage expenses amid a stubborn inflationary environment.
- There are some clear winners despite macro challenges. Channels and categories that saw positive and improving growth in the last five weeks include:
- Books, toys and games (e.g., Topps, Funko, Barnes & Noble)
- Warehouse clubs (e.g., Costco, BJ's Wholesale Club)
- Fast fashion (e.g., Mango, Rue21)
- The spring season leading up to Memorial Day is key for the home and garden sector. High mortgage rates and waning demand for DIY home projects have pressured the sector in recent months, but Consumer Edge’s data indicates some positive signs:
- Spending growth for home security/smart home devices (e.g., Blink, Nest, Ring) has remained strong, indicating an appetite for smaller enhancements to homes.
- Spending growth for the home improvement “subindustry” (e.g., The Shade Store, Floor & Decor, Harbor Freight) improved slightly, inching closer to positive territory.
- Spending growth for home furnishings has also improved, although trends are still weak. Notable standouts appeared in the bedding space, including brands like Eight Sleep, Boll & Branch and Saatva.