Circana: Consumer Value Priority Disrupts Traditional Spring Spending Patterns

Discretionary general merchandise was up 2% in units and down 1% in dollars on a year-over-basis for the five weeks ending March 30, and the category, according to Circana. The category was down 20% in units and down 16% for the weekend ending April 6 compared to the comparable week year, Circana reported.

Despite the appearance of sales volatility in week-to-week sales trends created by shifts in the calendar, consumer spending behaviors are stabilizing, said Marshal Cohen, chief retail industry advisor for Circana. As consumers have become even more committed to buying for the here and now, it is the shifts in broader seasonal demand patterns that warrant attention.

The expanded view of the Easter shopping season, spanning the week before and the week after, reveals a retail sales peak that fell short across all major retail segments, according to Circana, noting retail holiday shopping peaks have been flattening for the past couple of years, and each of the retail mini holidays so far this year are following the same pattern.

Beyond shifts in timing, the type of spending taking place for these mini-holidays and seasonal events is changing, as well, according to Circana. Apparel sales, for example, did not get the traditional Easter bump. Circana noted that prestige beauty was the only discretionary industry with positive revenue performance during the expanded Easter comparison period.

“(Consumers) are more focused on buying based on what they value in the moment, be it personal cravings, financial concerns or the weather, rather than being guided by seasonal trends and traditional habits,” Cohen said. “Whether it is a true change in behavior or a short-term reaction, manufacturers and retailers need to decide how, or if, they want to chase today’s value-driven consumer.”