The price must be right: Consumers this year have been holding out on nonessential purchases at pet, office supply, and home improvement stores, meaning retailers may need to lean into deals to inspire discretionary purchases, per Placer.ai.
Furniture and home accessories sales similarly failed to rise above inflation, growing by just 2.7%, as high interest rates caused more households to stay put and avoid big-ticket purchases. The big takeaway: Even with inflation beginning to ease, these spending trends are likely to continue well into 2023 as consumers grow more cost-conscious.