Consumers Investing in Small Luxuries Again
Unpredictable economic conditions in 2009 forced many consumers to reevaluate whether manicures, new handbags and even their cable TV service were worth the expense.
Signaling a full recovery may be on its way, new research released by STORES magazine finds that consumers are slowly starting to enjoy the same discretionary services or items they may have previously sacrificed because of the economic downturn.
The survey of 5,015 consumers was conducted for STORES magazine by BIGresearch, December 7-8, 2010. Among the key findings are indications that a few things, including casual sit down dining, department store shopping and gourmet coffee have made their way back on the "untouchable" list after falling victim to the "expendable" list the previous year.
"For a large part of the country, small luxuries such as gourmet coffee, casual dining and even high end cosmetics were among the things many consumers really had to learn to live without," says STORES Editor Susan Reda. "Though most Americans are still quite focused on maintaining a budget, many are once again falling in love with the things they had to temporarily say good-bye to."
When it comes to surfing the Web and consumer electronics, millions of Americans simply cannot get enough. The survey found eight in 10 (81.5 percent) in 2010 said their Internet service was untouchable -- consistent with what the survey found in both 2009 and 2008. As far as upgraded mobile devices are concerned, nearly twice as many people in 2010 than in 2008 (22.9 percent vs. 12.3 percent) said their cell phones, smartphones, tablets and eReaders were untouchable.
While there are some affording themselves the option of new shoes or upgraded cell phone service, overall the survey found most Americans are still evaluating their wants versus their needs. According to the survey, traditional discretionary expenditures such as magazine subscriptions, satellite radio and fine dining are still among those on the chopping block.
Nine out of 10 (90 percent) in 2010 said fine dining was expendable, the same as 2009 (90.8 percent), and 85.2 percent in 2010 agreed they could do without their favorite magazine, same as 85 percent in 2009.
Additionally, department and discount store shopping for apparel have also become increasingly important for consumers. In 2010, one-quarter (25.2 percent) of respondents said department store shopping was untouchable, up from the 21.4 percent who said so in 2009. While "forever in blue jeans" may be clich, the survey found that consumers really aren’t willing to sacrifice a new pair of jeans these days (24 percent said new jeans were untouchable in 2010 vs. 20.6 percent in 2009).
Signaling a full recovery may be on its way, new research released by STORES magazine finds that consumers are slowly starting to enjoy the same discretionary services or items they may have previously sacrificed because of the economic downturn.
The survey of 5,015 consumers was conducted for STORES magazine by BIGresearch, December 7-8, 2010. Among the key findings are indications that a few things, including casual sit down dining, department store shopping and gourmet coffee have made their way back on the "untouchable" list after falling victim to the "expendable" list the previous year.
"For a large part of the country, small luxuries such as gourmet coffee, casual dining and even high end cosmetics were among the things many consumers really had to learn to live without," says STORES Editor Susan Reda. "Though most Americans are still quite focused on maintaining a budget, many are once again falling in love with the things they had to temporarily say good-bye to."
When it comes to surfing the Web and consumer electronics, millions of Americans simply cannot get enough. The survey found eight in 10 (81.5 percent) in 2010 said their Internet service was untouchable -- consistent with what the survey found in both 2009 and 2008. As far as upgraded mobile devices are concerned, nearly twice as many people in 2010 than in 2008 (22.9 percent vs. 12.3 percent) said their cell phones, smartphones, tablets and eReaders were untouchable.
While there are some affording themselves the option of new shoes or upgraded cell phone service, overall the survey found most Americans are still evaluating their wants versus their needs. According to the survey, traditional discretionary expenditures such as magazine subscriptions, satellite radio and fine dining are still among those on the chopping block.
Nine out of 10 (90 percent) in 2010 said fine dining was expendable, the same as 2009 (90.8 percent), and 85.2 percent in 2010 agreed they could do without their favorite magazine, same as 85 percent in 2009.
Additionally, department and discount store shopping for apparel have also become increasingly important for consumers. In 2010, one-quarter (25.2 percent) of respondents said department store shopping was untouchable, up from the 21.4 percent who said so in 2009. While "forever in blue jeans" may be clich, the survey found that consumers really aren’t willing to sacrifice a new pair of jeans these days (24 percent said new jeans were untouchable in 2010 vs. 20.6 percent in 2009).