PORT WASHINGTON, N.Y., August 10, 2021 /PRNewswire-PRWeb/ -- A third of U.S. consumers say they have been engaging in more experiences such as dining out, attending sporting events, movies, gatherings with friends in the last three months as they did in the prior three months. In coming months, retail impacts will be felt as consumers ready for the anticipated return to more "normal" in-person activities, including the start of the school year, and returning to the office in some capacity. Looming over the list of factors expected to effect retail in September and beyond are the new developments and uncertainty related to the Delta variant of the COVID-19 virus, which will continue to change the retail dynamic through this period and yet another unique Holiday shopping season. "These interruptions underscore the importance of not trying to anticipate marketplace activity but rather being nimble in reaction to it," said Marshal Cohen, chief retail industry advisor for NPD.
July 2021 retail results
- U.S. retail results saw a brief dip in early-mid July, but otherwise have continued to show positive comparisons to both 2020 and 2019. Dollar sales of U.S. discretionary general merchandise rose 10% in the week ending July 31, 2021 over the same period two years ago, and 12% over 2020, according to "Retail Early Indicator" data from NPD.
- The beginnings of some back-to-school shopping influence surfaced in growth in accessories, apparel, footwear, beauty, and office supplies.
- Small appliances and housewares are dragging compared to last year's strong growth, but growing double digits versus pre-pandemic levels. While still not in full swing, back-to-college may be having a bigger impact than it did two years ago – a consequence of last year's delays in incoming college freshmen moving to on- or off-campus housing.
"Recent results are a prelude to the retail shifts expected over the next few months," added Cohen. "The traditional September lull in retail spending was disrupted in 2020, with an even more dramatic shift expected in 2021 – though the uncertainty surrounding the Delta variant has made the timing and nature of what consumers buy, and where and how they shop, more ambiguous."
The amount and ways in which consumers are spending their free time is changing,
- In July, 39% of consumers say they have more free time than before the pandemic, only slightly less than the 44% who indicated as such in February.
Consumer sentiments related to back-to-school, return-to-office, and holiday shopping may change.
- As of mid-July, 62% of U.S. consumers with school-aged children felt safe sending their child into the classroom at school full time this coming fall, while 23% do not.
- Three-quarters of consumers with school-aged children expected their child to begin the 2021-2022 school year in-person.
- 72% of college students will be living away from home this coming school year.
- 74% of people who have worked from home during the pandemic plan to return to a workplace away from home, more than three-quarters of whom plan to do so by September
- When asked about holiday shopping, 11% of consumers said they are still hesitant to shop in stores.
- 10% of consumers say they plan on giving more experiences, and fewer tangible gifts.
- One in five U.S. consumers already started their holiday shopping as of July, while 28% haven't even started to think about their holiday shopping yet.
Source: The NPD Group / July 2021 Omnibus
For more information, or to speak with Marshal Cohen, contact Janine Marshall at [email protected], and check NPD's Now in Retail page and follow @NPDGroup on Twitter to see the latest insights across retail.
Media Contact
Janine Marshall, The NPD Group, 5166252356, [email protected]
SOURCE The NPD Group
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