Unfortunately, retail therapy only works when you’ve got money — and when money is tight, retail therapy takes a hit. According to the latest retail sales report, May US retail sales grew just 0.1% — falling short of Bloomberg analysts’ 0.3% growth expectation. April’s retail sales were revised down to a 0.2% decline from the previous report, showing no change. Gas stations, furniture, and home stores were among the worst-performing categories.
- Findings from a KPMG survey released this week follow a similar trajectory, with 43% and 41% of respondents planning to spend less on out-of-home entertainment and restaurants, respectively.
- Average spending on restaurants, entertainment and media, and travel is expected to fall 9%, 8%, and 7%, respectively.
Breaking point: KPMG’s Duleep Rodrigo says “Consumers are tightening their belts another notch as they hunt for discounts, and even some essentials are being impacted.” Forrester’s annual survey reveals customer experience across 98K consumers and 223 brands fell for a third straight year to an all-time low. After years of price hikes pushing consumers to the edge, brands, restaurants, and retailers are now turning to value meals and price cuts to attract shoppers. McDonald’s, whose stock is down 14% this year, released details of their $5 value meal yesterday. But are consumers lovin’ it enough to buy again?
