Lisa Simpson
Sep 11,2009
In: Finance

Feeling the Pulse of the Consumer Will Be a Great Way to Find Out Which Way the Wind is Blowing

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Going or not going shopping with the consumer will be a great way to feel the pulse of the American economy because it is consumers who account for 70% of all economic activity. The retail sector is the biggest segment of the economy. Lunching out, buying a sweater or picking up a DVD will all tell on the economic climate of the nation.

Various companies gave in their reports. The figures coming in about the last quarter tell a mixed tale of consumers being thrifty, preferring to stay at home and buying only the essentials.

Statistics show that people are purchasing more garden stuff and paint especially in highly foreclosed regions like California as per the findings of Home Depot. The selling of houses in foreclosure auctions is triggering off sale of paints and carpets since the new owners want to spruce up their new homes.

In the second quarter this year the winners are paint and gardening – the numbers being better than the previous year. Consumers bought plenty of seeds, mulches and patio blocks. There was a good demand for repairing of taps and outdoor power gadgets. The consumers seemed to be doing more gardening.

Purchases of items priced more than $500 dropped compared to the previous year. The stimulus package prompted consumers to do some shopping of big items. There was a fall in housing business, buying of appliances etc.

According to Target the citizens limited their buying to home decoration items and gardening stuff including patio furniture.

Thus generally people are tending to stay more at home and hence the focus is on making the house attractive. People are taking up smaller projects themselves rather than send for a mechanic. Gardens are getting extra attention – perhaps with an eye to the food crisis. Forgetting new appliances people are sticking to the old ones and repairing these when required.

Sale of health care products, food and beauty items are picking up. The beauty sales are low in the costly departmental stores however. For stuff like towels, sheets and clothing the consumers were knocking at stores operated by TJX cos etc. Denim is also being bought in good quantity at Saks Inc stores. The trendiest brands are doing very well.

In the second quarter sales of clothes is relatively slower. The regular shoppers are not appearing and cutting down on weekend trips rather than weekday trips.