"Shoppers are out for vengeance.
"A year into a pandemic that’s devastated lives, jobs and the economy, those who are lucky enough to have disposable income are ready to go out and splurge - even if they still have nowhere to go in that stunning dress or those brand new sneakers. Some are calling this 'revenge spending.'
"U.S. retail sales are near record highs and employment and vaccinations are on the rise. Americans have amassed a massive stockpile of excess savings — Bloomberg Economics estimates it to be about $1.7 trillion since the beginning of the pandemic through January. And that’s about to be bolstered by a new round of stimulus payments. As the economy reopens, consumer spending over the next two quarters is likely to be the strongest such period in at least 70 years with a rebound in services leading the way, according to economists at Wells Fargo & Co."
- KC's View:
Let's not assume that all this money will go to discretionary purchases, though it is fair to work on the premise that a considerable percentage of it will.
I do think that this is an opportunity for food retailers to be even more aspirational in their approach to marketing, to up-sell customers into new categories and higher quality items, to appeal to people's good taste in a way that benefits customers as well as the store.
Teach people to buy smarter, cook better, and feed their families in a way that raises the bar, as opposed to lowering it.