THE HIDE REPORT

What’s rocking retail sales?

 Throughout the course of the pandemic, spending by consumers of all income levels has been critical to retail performance. As the pandemic has worn on, higher-income consumers have played an even more significant role in the continuing growth of retail sales. This shift in spending was evident throughout most of 2021, as prices rose and spending among lower-income consumers was no longer shored up with stimulus checks.

“We can expect to see continued consumer retail spending pull-back in the coming months,” said Marshal Cohen, chief industry analyst for NPD. “There’s no way to maintain the elevated level of demand because there are just too many components tugging at consumers right now. The rising cost of living and other drags on spending, combined with demand that is waning from pandemic-highs, mean the elevated level of consumption will increasingly become less tenable.”

Who’s Buying?

Households with