Consumer Behavior

US consumers back focusing on in-person experiences

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March 31, 2022

The U.S. consumer is starting to spend more on in-person experiences with experiential spending hitting 91% of 2019's pre-pandemic levels, according to data from The NPD Group.

The news comes at a time when consumers were expected to be pulling back on general merchandise retail which is not happening as spending in that category remained elevated 19% above pre-pandic levels, according to a press release.

"There is a cautious optimism in the air, as consumers embrace some newfound freedom from restrictions while not yet letting go of their pandemic ways," Marshal Cohen, chief retail industry advisor for NPD, said in the release. "If the pandemic's trajectory continues moving toward an endemic status, people are likely to begin spending very differently."

Accessories, beauty, apparel and other categories are getting a boost from experiences as consumers return to more in-person activities and sales of the products most popular through the pandemic continue to exceed pre-pandemic performance, including toys, small appliances, housewares and technology.

"Retailers and manufacturers need to prepare for the multiple directional shifts that are poised to occur," Cohen said in the release. "Beyond the growing pressure on retail sales, as consumers redirect more spending toward experiences and the looming sales comparisons of the past two years, political unrest, economic challenges and consumers' financial well-being can all create substantial distraction and retail disturbances."