MARKET OUTLOOK

Retail sales for non-essential items in developed markets is expected to slow in the second half of the year as consumers shift more of their budgets to everyday essentials.  Discretionary spending still favors experiences (services) over products.  

Purchases of apparel, home textiles and other products will be more ‘thoughtful’ with quality (style, durability, customer service) being a growing priority.  Yes, even the budget customer is boarding the ‘fewer but better’ train.  Price is still a consideration.  For many it’s a big consideration.  However, quality is rapidly becoming a heavy factor in that all-important decision to purchase.  Brands that take definitive steps to upgrade their products, and customer service, will increasingly outperform their competitors.