New York — According to one key spending indicator, spending this year’s new semester could exceed pre-pandemic levels as more children return to physical classrooms and families try to resume life. There is.
Mastercard Spending Pulse, which tracks spending on all payment forms, including cash, predicts that spending will increase by 5.5% between July 15th and September 6th. This is compared to the same period last year, when sales increased by only 1.2% due to a pandemic. The school reopening plan and shopping for the new semester are confusing.
According to Mastercard SpendingPulse, a clearer sign of rebound is that new semester sales should increase by 6.7% over the two years. The figures do not include sales from automobiles and gas.
Last year, parents focused on spending online and buying consumables and electronics to help their children set up workstations at home. As for apparel, I bought only sweatpants for children and other comfortable clothes, and avoided department stores.
The rosy forecast released Thursday shows a strong recovery as retailers, especially mall-based stores, feel that newly vaccinated shoppers are safe to go out and socialize. Because I’m watching. On Wednesday, the National Retail Federation, the country’s largest retail group, significantly revised its annual retail sales outlook. It is currently expected to increase by 10.5% to 13.5% compared to the previous forecast of at least 6.5% made in February.
“The economy and consumer spending have proved to be far more resilient than initially predicted,” Matthew Shay, president and chief executive officer of the retail group, said in a statement. “The combination of vaccine distribution, fiscal stimulus and private sector ingenuity has brought millions of Americans back to work.”
The NRF pointed out the risks associated with labor shortages, economic overheating, tax increases and over-regulation, but noted that households as a whole are healthier and consumers are showing the ability and willingness to spend.
The downside is that many retailers may not be able to take full advantage of this sudden surge in spending. Steve Sadove, MasterCard’s senior adviser and former CEO and chairman of Saks Inc, said that many of the products produced abroad had to be ordered at least six months in advance and were conservative. It is difficult for retailers to bring merchandise into stores.
“The supply chain is backed up. The ports are backed up,” he said. “You will find rarity.” Many retailers he spoke of carried them by airship instead of boating them to bring them to the store in time to return to school. I said I had to.
Sadove said clothing should enjoy a stronger than expected rebound for this new semester season, with Mastercard Spending Pulse forecasting a 78.2% increase in sales compared to last year. Over the next two years, this figure is expected to increase by 11.3%. According to Sadove, retailers are shifting personal consumption to trendy items such as cropped tops and miniskirts.
Department stores, in particular, have made a solid recovery last year after suffering fierce competition from discount stores such as Wal-Mart and Target. Undergraduate sales should increase by 25.3% during the new semester compared to a year ago. Sales should increase by 9.5% on a two-year basis.
Sadove told The Associated Press that department stores are enjoying the benefits of expanding into online services, such as allowing online shoppers to receive orders at stores. They are also expanding into new categories like wellness.
Household appliances are expected to grow significantly compared to a year ago and on a two-year basis. However, online sales are expected to decline by 6.6% during this period compared to last year, when shoppers focused primarily on online purchases. Still, according to Mastercard SpendingPulse, this number should increase by 53.2% over two years.
When the children return to the classroom, the store expects strong sales.business
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