Mastercard Study: Consumers Are Prioritizing Experiences And Essentials

Mastercard Study: Consumers Are Prioritizing Experiences And Essentials

Mastercard Finds Consumers Are Prioritizing Experiences End Essentials
Mastercard Finds Consumers Are Prioritizing Experiences End Essentials
Romana Hai

Romana Hai

Romana Hai

Romana Hai

Even in the face of economic pressures, consumers are leaning into experiences and prioritizing essential goods now more than ever.

A new Mastercard study on consumer spending preferences found that despite heightened logistical challenges and price pressures, global consumer flight bookings between the months of May and August of this year were 15% above 2019 levels.

Spending at restaurants rose 25% this year compared to the same time in 2021, while grocery spending—primarily fueled by food inflation—was up 14%.

The study also found that certain habits and preferences that consumers developed during the pandemic have seemingly stuck. For example, online grocery spending is 70% higher than before the pandemic began.

And with work from home still being very much a preference and necessity to many, there are no longer any designated days when consumers spend more. For example, “date night” is now any night of the week instead of a Friday or weekend night. Similarly, a movie night at the theater is now a weekday activity, specifically Thursdays and, to a lesser extent, Mondays too.

This shift has had significant staffing and supply chain implications for retailers, restaurants and other businesses. Case in point: Roughly 5% of total weekend spending at department stores globally has shifted into the weekday, representing approximately $22.3 billion of global department store sales.

“The shifts in spending preferences come as consumers settle in to a new rhythm,” said Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute. “Despite contending with rising prices, interest rates and growing economic uncertainty, consumers continue to evaluate their spending habits based on what works best for their lives.”

MUST READS
Marks & Spencer Appoints Interim CFO

Marks & Spencer Appoints Interim CFO

Marks and Spencer has appointed former Rentokil executive Jeremy Townsend as its interim finance chief. The appointment comes days after the British retailer announced that the rising cost of living and energy costs were taking a toll on its business. In its last earnings report,

Brunello Cucinelli Signs Long-Term Licensing Deal with EssilorLuxottica

Brunello Cucinelli Signs Long-Term Licensing Deal with EssilorLuxottica

Italian fashion brand Brunello Cucinelli has signed a 10-year deal with EssilorLuxottica to design, manufacture and distribute its eyewear products. The agreement between the two firms will officially begin on January 1, 2023, and run until December 31, 2032. It will see EssilorLuxottica release the

Russia’s Ozon Welcomes Chinese Sellers As Western Sanctions Take a Bite

Russia’s Ozon Welcomes Chinese Sellers As Western Sanctions Take a Bite

Russian retailer Ozon Holdings is seeking to boost cross-border trade on its platform by opening a new office in Shenzen, China. The announcement comes at a time when Russian companies are facing sanctions globally, forcing them to find new business partners in countries such as

No more posts to show, explore other topics: