Even as consumer budget pressures push many to cut back on non-essential purchases, shoppers are still splurging on the clothing they want, a PYMNTS Intelligence study found.
Look at the numbers
“The Nonessential Spending Deep Dive Edition” of the PYMNTS Intelligence Series “New Reality Check: The Paycheck-to-Paycheck Report.” lending clubis based on a July survey of more than 3,400 U.S. consumers to understand the impact of unnecessary spending on shoppers’ ability to manage spending and save.
The results revealed that of the 70% of retail shoppers who purchase “nice-to-have” items at least once in a while, they have more than one item of clothing they want. 36% of people who shopped at non-essentials or non-grocery retailers said their most recent splurge was on clothing, followed by health and beauty at 19% and nice-to-have furniture at 13%. and home appliances.
Data in context
as a retailer kohls Consumers want clothes for special occasions.
“We… feel like we can grow by getting the most out of our dress-up products even more. People are asking for it,” CEO Tom Kingsbury He told analysts at an earnings conference earlier this month. “It’s clear that people are going out more and they want clothes like that as part of their wardrobe. They’re looking in their closets and they don’t have that product. So we intends to make that happen.”
Still, even clothing brands are feeling the ongoing economic challenges impacting their customers’ spending habits.
“For fiscal year 2025, we expect a cautious environment with consumers overall being mindful of discretionary purchases given inflation and high interest rates.” guess CFO marx newbrand He told analysts on a conference call Wednesday (March 20) to discuss the company’s latest updates. settlement of accounts.
Similarly, lululemon sees U.S. shoppers becoming more cautious in their spending, with its latest earnings report showing a comparable sales increase of just 7% in the Americas, compared to a 43% increase internationally. are sharing.
