Tag: retail spending

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As the COVID-19 pandemic continues to create uncertainty for the U.S. economy, different states and industries have seen many changes with each passing month. In our July edition of the State of the Economy report, written by Principal Economist Joseph Mayans, we’ll be breaking down the data that financial institutions can use to navigate a recovery. Labor markets and state-level employment impact Prior to the pandemic, unemployment in the U.S. was at a 50-year low, at an astonishing rate of 3.5%. Following the start of the pandemic, research shows that unemployment rose from 6.2 million in February to 20.5 million in May 2020, and sent the unemployment rate soaring to 14.7%. However, the data from last month’s State of the Economy Report revealed that the unemployment rate began to decline, with 46 states seeing rises in new job opportunities. Although unemployment started to increase, many states (like Nevada) saw a 25.3% unemployment rate statewide. The numbers for June are much more promising, and reveal a continuous uptick in the number of jobs added. The unemployment rate in the U.S. also fell from 13.3% to 11.1%. The impact to industries COVID-19 had major impacts on every industry in the U.S., with the leisure and hospitality industry being the hardest-hit at 7.7 millions job lost. According to CNBC, “The large number of layoffs in this industry led the U.S. economy to its worst month of job losses in modern history.” However, job growth for the leisure and hospitality industry began to gain momentum in May, with 1.2 million jobs added. This can be attributed to a slow and gradual rollback of stay-at-home orders nationwide. As of June 2020, 4.8 million jobs have been added to this industry. The trade, transportation, and utilities, as well as education and health services, manufacturing, and business services industries also saw improvements in employment. The impact to retail sales Clothing stores, furniture, and sporting goods stores were only a few of the many retailers that saw heavy declines following lockdown orders. After two consecutive months of decline, retail sales finally rebounded by 17.7% in May, with the largest gains occurring in clothing stores (+188%). In June, retail sales continued to rise substantially, resulting in saw a v-shaped bounce. However, with unemployment benefits nearing the expiration date and the number of pandemic cases continuing to increase, recovery remains tentative. Our State of the Economy report also covers manufacturing, homebuilders, consumer sentiments, and more. To see the rest of the data, download our report for July 2020. We’ll be sharing a new report every month, so keep an eye out! Download Now

Published: July 31, 2020 by Kelly Nguyen

The winter holiday festivities are underway, and when it comes to the local malls, the holiday spending spirit seems to have already been in place for weeks. The season for swiping (credit cards) has begun. Before many of them set out with holiday gift lists in tow, they may be setting their sights on new lines of credit – by adding to their artillery of plastic. With 477.6 million existing credit card accounts, what do these consumers look like? While we can all agree that the meaning behind winter holiday celebrations is not the act of spending and giving material gifts, the two have come to be synonymous. This year is anticipated to be no different. When asked to describe their anticipated spending for the holidays this year, a recent Mintel survey said 56% of respondents planned to spend the same amount as they did last year. Nearly a quarter of respondents (23%) said they planned to spend more than they did last year. The uptick in spending as the year rounds out is no news flash. It is engrained within the fiscal landscape of each year, arguably its own tradition. According to a recent Experian consumer survey, Americans plan to spend an average of almost $850 on holiday gifts this year. Given what we know of consumers – and ourselves – as increased spending is upon us, credit card openings and usage are also on the rise. In order to capitalize on fulfilling your consumers needs during this bustling time filled with shopping bags and loaded online carts, it’s important to know what consumers look for in a credit card. Want to attract those holiday shoppers? The key to getting your plastic in their wallet is rewards, rewards, rewards. 58% of consumers will select a credit card for its rewards – including cash back, gas rewards, and retail gift cards – according to recent Experian consumer survey research. Is your credit card program stacked with rewards-ready options? Now what? Go where your consumers are – and for many of them that means online. While traditional retailers are still preferred destinations for holiday shopping, online is increasingly becoming a preferred way of shopping. 90% of consumers plan to do holiday shopping online, according to a Mintel study. Online shopping trends and online credit card applications trends seem to go hand in hand, according to Mintel and Experian data. Whether your consumers are looking for deals, that adrenaline rush of waiting until the last minute, or a trip to just get away from it all, credit cards can help them get there. And while the hustle and bustle of the holidays are ramping up, following the holidays quickly comes the new year – another close to 12 months of consumer spending (not just the dollars spent during this festive season). Consumer behavior across the entire year can be the key to enhancing your marketing and account management strategies. By knowing how much your consumers spend on all the plastic in their wallets – think bank cards too – you can offer customized reward programs, create strategies to maximize wallet share and retain profitable customers. Learn more about the first commercially-available spend algorithm built from credit data and tap into your wallet share for each consumer. 1Mintel Comperemedia 2Experian consumer survey research

Published: November 27, 2018 by Stefani Wendel

Even as interest rates remain at near-record lows, mortgage originations declined for the second quarter in a row in Q2 2011 to $268 billion, a 19 percent decline over the previous quarter. Refinance activity that spurred originations in 2010 has not been as prevalent this year. Listen to our recent Webinar on consumer credit trends and retail spending. Source: Experian-Oliver Wyman Market Intelligence Reports.  

Published: March 28, 2012 by Guest Contributor

While retail card utilization rates decreased slightly in Q3 2011, retail card delinquency rates increased for all performance bands (30-59, 60-89 and 90-180 days past due) in Q3 2011 after reaching multiyear lows the previous quarter. Listen to our recent Webinar on consumer credit trends and retail spending. Source: Experian-Oliver Wyman Market Intelligence Reports

Published: March 12, 2012 by Guest Contributor

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