Aided by economic stimulus and the pandemic that is still in full swing, consumers continued to spend on categories that make their home life more comfortable for the first six weeks of 2021, reports the NPD Group. Consumer spending for general goods groups such as household goods, entertainment electronics and small appliances achieved double-digit dollar growth in January and the first week of February compared with the previous year. During the pandemic, consumers were buying products that make staying home easier and tastier. Retail spending for this and other categories such as exercise equipment has been met $ 706 billion in 2020, which is an increase of 1% compared to 2019.[1]
PORT WASHINGTON, NY, February 18, 2021 / PRNewswire-PRWeb / – With economic stimulus and the pandemic still in full swing, consumers continued to spend on categories that make their lives at home more convenient for the first six weeks of 2021, reports the NPD Group. Consumer spending for general goods groups such as household goods, entertainment electronics and small appliances achieved double-digit dollar growth in January and the first week of February compared with the previous year. During the pandemic, consumers were buying products that make staying home easier and tastier. Retail spending for this and other categories such as exercise equipment has been met $ 706 billion in 2020, which is an increase of 1% compared to 2019.[1]
“The COVID-19 pandemic has forced consumers to adapt, and quickly. They have shifted their discretionary spending from travel and other experiences to the here and now of a new lifestyle in their home country,” he said Marshal Cohen, Chief Advisor to NPD, Retail. “While there have been some struggles to keep up and align retail marketing and merchandising, this rapid shift in consumer buying behavior propelled multiple industries such as consumer technology and housewares, and digital technology was at the forefront.”
Online dollar sales of discretionary general goods increased 34% in 2020.[2] Small appliances, video games, housewares, consumer electronics, and toys were the strongest overall growth sectors for the year, leading the e-commerce fee with online gains of more than 50% each.
The story goes on
So far, every week in 2021 has seen double-digit growth in discretionary retail spend in general merchandise categories NPD-Tracks – a trend that has continued through early February. The week ended February 6, 2021According to the leading indicator data from NPD, sales of discretionary retail dollars rose + 13% from the week of the previous year.[3] Even some industries that have struggled due to the impact of COVID-19, such as fashion, are now showing signs of improvement. The checkout information from NPD shows that purchases in the online channel continue to exceed last year’s results by more than 30%.
“The resilience of this continued spending, when aided by the stimulus payments, is impressive in that consumer demand and the desire for products to improve their lives at home are clearly there,” Cohen added. “Because many products are inherently one-time purchases, future retail dynamics require product and marketing innovations that create new intrigues for consumers.”
[1] Source: NPD Group / Consumer Tracking Service (US toys, apparel, accessories, shoes), Checkout (US small appliances, housewares, consumer electronics), Retail Tracking Service (US cars, beauty, office supplies, youth, sports equipment), Market Dynamics Report (video games), DEG estimates (Media Entertainment)
[2] Source: NPD Group / Consumer Tracking Service (US toys, clothing, accessories, shoes), Checkout (US small appliances, housewares, consumer electronics), Retail Tracking Service (US cars, beauty, office supplies)
[3] Source: NPD Group / Point-of-Sale Leading Indicator Report, NPD Universe, WE February 6, 2021 Source: NPD Group / Point-of-Sale Leading Indicator Report, NPD Universe, WE February 6, 2021 (Accessories, clothing, auto parts, beauty, consumer technology, DVD / Blu-ray, shoes, housewares, youth items, office supplies, small appliances, sports equipment, toys, video games)
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About the NPD Group, Inc.
NPD provides data, industry expertise, and prescriptive analysis to help our clients grow their business in a changing world. Over 2,000 companies worldwide rely on us to measure, predict and improve performance across all channels, including brick and mortar, e-commerce and B2B. We have services in 19 countries worldwide with offices across America. Europeand APAC. Areas of activity include apparel, home appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, grocery, food service, shoes, home, home improvement, youth products, media entertainment, mobile devices, office supplies, retail, sports, toys and more Video games. Please visit npd.com for more information. Follow us on Twitter: @npdgroup.
NPD’s checkout service provides reliable data to track and improve performance across all channels, as well as buyer analytics that companies can use to retain current customers and attract new ones. Over 130,000 consumers, the largest omnichannel panel focused on general goods and food service, provide us with receipt-based information about their in-store and e-commerce purchases. With extensive data from the same consumers over time, Checkout sheds light on behavioral trends, including migrating to online shopping by category and consumer demographics. Buyer analytics provide insights into the most valuable customers, brand loyalty, brand leak / lift, brand launches and more.
Media contact
Janine Marshall, The NPD Group, 5166252356, [email protected]
SOURCE The NPD group
