Retail Starting to See a Little More Green
Home and garden centers have been a beneficiary of home-bound consumers who want to spruce up their yards.
Some good news: Consumer spending is “beginning to trend in the right direction,” according to a new report from Cardlytics, which tracks spend behavior for its clients. “Year-over-year [YOY] retail spend actually increased the week of April 30, jumping 5.6 percent,” Cardlytics reported, noting this was the highest YOY growth for any week in 2020 so far – “even before most Americans began to shelter-in-place in mid-March.”
Other observations from the Atlanta-based firm in its State of Spend report:
- Looking good —Spending at online beauty stores “gained significant steam, peaking the week of April 16 with 136 percent YOY growth.”
- Big growth in smaller places — Smaller metropolitan areas saw the fastest growth in e-commerce spend between mid-March and late-April. Meanwhile, larger cities “saw a surprising decline,” such as a 2 percent drop in the New York City area.
- Back to basics — Purchases of essentials continue to drive in-store recovery at brick-and-mortar stores such as convenience, grocery, home and garden, and pet supplies.
Speaking of home and garden, home-bound consumers helped grow that segment 21.4 percent (YOY) the week of April 30, Cardlytics reported. (For more on the green-thumb trend in retail, see this article.)
In its report, Cardlytics also declared that “home is the center of the new economy.” Online purchases have increased significantly since sheltering in place started in most areas, including 65 percent growth in food delivery and 27 percent for online grocery purchases. “Grocery spend spiked with the start of shelter in place and has continued to capture YOY increases ever since,” Cardlytics reported.