Consumer behavior in the first

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The retail data shows that consumers have tightened the purse strings, as they did for most of 2023.


One sign that consumers are spending less on non-essential items is the declines in luxury purchases. High-end apparel and handbag sales declined significantly in the first quarter (-2% and -10% respectively), as did toys (-12%) and electronics (-12%). Instead, consumers are sticking with necessities like health and beauty products (+12%). They are also choosing lower-priced alternatives, as general handbag sales are up +7%.

quarter reminds us of their approach to holiday purchases turkey whatsapp lead in 2023: Shoppers waited patiently for attractive discounts, such as those offered on Prime Day in the summer, during back-to-school season, and on Black Friday and Cyber Monday. Could this be the new normal?

What it means for you: Retailers and brands need to plan promotions, offering attractive deals during those big shopping moments to help drive sales. Additionally, focus your efforts on strategies that engage customers throughout the year — like loyalty programs and personalized recommendations — to maintain brand relevance beyond key shopping events.