From the Washington Post:
"For more than two years, while Americans rode out the pandemic by bingeing on televisions, furniture and home projects, businesses that relied on face-to-face commerce suffered. Movie theaters went dark. Airplanes flew empty. Restaurants starved.
"Now, consumers are returning to their previous habits with the balance between goods and services spending back to where it stood in May 2020, according to data adjusted for inflation from Flexport, a freight forwarder. A separate metric cited by Goldman Sachs shows goods consumption about 5 percent higher from before the pandemic, down from a peak gap of 15 percent.
"'We are just in the early stages of seeing the rotation of consumer spending from goods to services. As time goes on, you are going to see more of that. Food services are quite strong. Travel is picking up, airfares and hotel occupancy,' said Kathy Bostjancic, chief U.S. economist at Oxford Economics. 'The consumer is looking more to services spending, especially with spring and summer upon us'."
- KC's View:
Seems to me that this is one more good argument for something we've long talked about here on MNB - that retailers are well-served by a strategic approach that moves them beyond being simply a source of product, to being a resource for the customer. Especially as it concerns food, the vast majority of shoppers are in need of guidance and information, and desirous of inspiration because they feel aspirational. This is fertile ground for services that can created sustained relationships between stores and shoppers.