Many Americans who can afford to save money – thanks to reduced spending on eating out, vacations, and consumer goods – are playing it safe and hoarding their cash, according to recent research by Gallup/Franklin Templeton.*
And those who currently are saving at least a little money largely plan to keep saving rather than spending in the near term.
And those who currently are saving at least a little money largely plan to keep saving rather than spending in the near term.
“There’s a lot of uncertainty,” said Grant Buckles, senior research consultant who worked on the study. “For the time being, I think people want to make sure that they have money for necessities.”
This dampened discretionary spending is not exactly a news flash for most retailers, is it?
However, we think there is an important aspect not be overlooked:
Refreshing, isn't it? Reassuring even.
This IS an appropriate time to just be keeping your options open.
Indeed, these shoppers likely are looking ahead to Holiday, when they will be willing to spend on others.
Meanwhile, the Gallup/Franklin Templeton folks conclude "a majority of Americans plan to moderate their overall spending."
Inventory buyers would be well advised to do the same!
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* Paul Berg and Megan Brenan, Americans Favor Saving Over Spending. Gallup News, September 9, 2020.
This dampened discretionary spending is not exactly a news flash for most retailers, is it?
However, we think there is an important aspect not be overlooked:
- The shoppers are by and large behaving like grown ups!
Refreshing, isn't it? Reassuring even.
This IS an appropriate time to just be keeping your options open.
Indeed, these shoppers likely are looking ahead to Holiday, when they will be willing to spend on others.
Meanwhile, the Gallup/Franklin Templeton folks conclude "a majority of Americans plan to moderate their overall spending."
Inventory buyers would be well advised to do the same!
----
* Paul Berg and Megan Brenan, Americans Favor Saving Over Spending. Gallup News, September 9, 2020.
