By Ananya Mariam Rajesh
(Reuters) – Investors are analyzing U.S. credit card spending patterns to determine potential trends that could benefit specialty retailers during the summer months.
Recent reports from retailers indicate that consumers are selectively purchasing non-essential, desirable products – opting for items like wide-legged jeans over electronics.
This shift has positively impacted sales of trendy products like Birkenstock’s shoes, Abercrombie and Fitch’s jeans, and Vuori’s athleisure clothing, while products from Home Depot and Best Buy have seen less demand.
Research firm Emarketer analyst Zak Stambor noted, “Consumers are becoming more selective in their spending, willing to splurge on higher-priced items like Hokas or Birkenstocks.”
In the first quarter of 2024, demand for fashionable products led to sales growth in clothing, sports goods, and footwear, while big-ticket items related to living spaces experienced declines.
Analysts suggest that the shift in consumer behavior is reflected in retailers’ stock prices, with some companies seeing significant growth while others face challenges in remaining relevant.
Various retailers are adjusting their strategies to cater to changing consumer preferences, focusing on offering sought-after brands and innovative products to drive sales.
After a mixed start to the year, credit card data is providing insights into consumer spending patterns, highlighting which products and brands are gaining traction.
Consumer Edge reported that spending on certain brands like Vuori, Skims, Abercrombie & Fitch, Hoka, and On Holding has increased compared to the previous year, while companies like Victoria’s Secret, Under Armour, and North Face have seen declines.
Consumer Edge’s Head of Insights, Michael Gunther, observed that newer, niche companies are outperforming established players in the clothing and shoe market.
