On today’s Morning Edition, NPR’s Tovia Smith reported that while parts of the economy are struggling, some people are still indulging in personal luxuries like massages, spa trips, fitness and alcohol.
Smith interviews a consumer who says that instead of their vacation trips to Copenhagen and Kenya, they will opt for something a little more low key like a facial or dance class at the local gym. Most of America isn’t having to make this sort of trade down. Most people are deciding whether to stick with Froot Loops or switch to store brand Fruity Rings. But the bigger point of the article is that people are, in fact, trading down at all income levels.
The article goes on to interview shoppers who are bringing their entertainment into the home and eliminating “theater, restaurants, and football games” in exchange for eating in with a glass of wine or bottle of beer. This is consistent with the Miller Zell Shopper Survey that showed 50% of shoppers are spending less over all categories but increasing spending in grocery by 62%. 68% of shoppers reported staying in versus eating out or going out for entertainment.
This is bad news for Broadway, but great for grocery if retailers and category managers heed the call.
