Shoppers Seek Small Splurges Over Big Purchases Amid Economic Uncertainty
• Consumers are moving away from big, expensive purchases and toward smaller, affordable treats like makeup and specialty coffee. This "lipstick index" often occurs during economic downturns.
• Retail analysts predict that 2023's unexpected consumer spending surge will slow in 2024 as shoppers tighten their belts amid factors like inflation and a slowing job market.
• Consumers will still spend, just more carefully, seeking out little luxuries that feel special but don't break the bank. Areas of growth include beauty, self-care, food, and beverages.
• Retailers like Target and Macy's are catering to this desire for affordable joy and practical luxury, offering curated selections of items at various price points.
• Even shoppers still wanting "must-have" items will look for deals, tapping into resale markets. Overall experts expect widespread desire for small splurges that deliver feelings of treating oneself.