When the COVID pandemic struck, people immediately shut themselves in their homes and avoided spending. In the past year, credit card debt has come down dramatically and households are now sitting on a lot more spendable money. On Fox Business earlier this month, I took a closer look at the retail trends and how the latest round of stimulus checks could impact sales. Check it out!
With this next wave of stimulus money coming in, it lends the question of how big of a deal will it be for the retail sector? In short: HUGE!
$83 billion of debt was paid down since last year in 2020. While people were hunkering down during the pandemic, uncertain about what was going to happen in the future, they were using their stimulus money to pay down their debts. So needless to say, we have a pent-up demand right now for the retail sector.
The National Retail Federation is expecting retail sales to go up between 6.2% to 8.2%. Not to mention, Brandon Maxwell is going to be the creative designer of Walmart. Will this really make any sort of major moves for Walmart? That’s to be seen. They’ve tried to do creative directors at Walmart so many times to elevate that brand, I don’t think this is going to be successful – but I do love me some Brandon Maxwell, he is a fantastic designer! And one thing I am certain of – I would go to Walmart right now just to get out and see people. I’ve been help up in my home, like everyone else. People just want to get out and spend money.
Additionally, consumer package goods is another trend and unprecedented focus that we’ve been seeing. Who would have thought that Target would become out go-to store for the past year? Millennials actually ended up spending more +337% on fancy napkins since last year!
In the past year, we saw a huge uptick in people spending their money to improve their homes – which will certainly continue. But let’s face it – we are so sick of wearing sweatpants and athletic leisure every day. People want to wear real clothes again. Just looking at Urban Outfitters recent numbers, 7 out of 10 of their top selling products were dresses. Women are ready to get out there and strut their stuff again. I know I am! This round of stimulus checks is going to spark a whole new impetus of what is trending in retail.