Winter nesting sharpens the retail divide
One of the coldest winters in recent years has led us to batten down the hatches
and nest in our inner sanctums. The impact of this behaviour on retail, has meant
a sharpening of the divide between needs and discretionary spending.
Think of Maslow’s hierarchy of needs, and that is exactly what is playing out in
retail. We are turning to the creature comforts of good food, wine and shelter.
Food performing solidly at +4.1%, specialised food at 9.18% and liquor at 8.87%.
While hardware (4.5%) and furniture & floor coverings (5.2%) are also enjoying growth.
Or turning to the traditional winter purchases of pharmacy (7.18%)
But as we move down the hierarchy and into discretionary territory, the retail cliff
we have come to know appears sharper and deeper...
Footwear – 12%
Clothing – 4.7%
Dep’t stores – 2.2%
Electrical – 7%
Eating out – 3.1%
Yes some of these categories are experiencing currency based deflationary pressures,
but the scale of decline points to a widening divide and change of shopper priority
focus.
But, Spring has sprung and hopefully so too does retail growth (July 1.36%) as we
approach the party season.
If you would like to understand your category in more detail, your relative performance,
or how to better engage your consumer, RetailOasis has extensive retail experience
and can assist you with future business development based on rigorous quantitative
analysis and insights. Contact Steve Kulmar or Nerida Jenkins at RetailOasis on
+612 9976 6222 or follow the link below to order a report
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