Millions of consumers in the United States reconsider their past spending patterns

The US retail sector is ready to return after a risky year

Consumer behavior in the United States has undergone a major transformation over the past 15 months.

From the source

More than a year has passed since the Corona virus caused events and events around the world to stop, and remote work expanded, prompting millions of US residents to wear comfortable sportswear and stay at home for months in a row, as well as to reconsider their previous spending patterns.

In recent weeks, however, life has begun to return to normalcy in several regions of the United States, as Americans are showing remarkable enthusiasm for the post-pandemic era in the way they dress.

Benefits

The New York Times revealed that major traditional retailers such as TJ Max, Macy's, and event clothing rental platform such as Rent the Runway are already reaping the benefits after a perilous year of layoffs and cuts. Budgets, confirming the sector's readiness to return strongly to its pre-pandemic state.

The newspaper quoted the CEO of "Rent the Runway", Jennifer Hayman, as saying that "consumers have returned to the market in large numbers, since the decline caused by the (Corona) pandemic in May of last year." By 92%, and the number of customers is on its way to exceed 2019 levels by the end of this year.

recovery

Hyman added that traditional retail centers in the American South, such as Texas, Florida and Georgia, were the first to show signs of recovery this year, although they have not yet returned to the level of activity in 2019.

She stated that consumer behavior in the United States has witnessed a major and irreversible shift over the past 15 months, indicating that the greater concern for sustainability has prompted millions of consumers to reconsider their previous spending patterns, including the increasing reliance on e-commerce and online services.

Harm

Hayman pointed out that the clothing vendors were damaged last year, stressing that "Rent the Runway" was not an exception to its exposure to damage during the "Corona" crisis.

But Hayman reported that the New York-based company is expanding rapidly despite closing its five retail stores in major cities, laying off half of its employees, as well as amassing a $ 750 million round of financing and losing its competitive position in the early days. In 2019, while it will likely seek an initial public offering at some point.

"The decline in the valuation does not mean anything," Heymann said, indicating that her company needs money to ensure it is prepared for any scenario.

Recovered

Hayman said that, despite this, the recovery began as soon as consumers began receiving vaccines in mid-February, pointing out that the main factor was consumers' desire to celebrate even the smallest occasions other than the most obvious events, such as summer weddings, vacations and important professional moments.

The biggest winners

"The pandemic has made the apparel and fashion industry among the biggest winners in retail trade in a new era of consumption," said Claudia Darbeisio, partner in Bain & Company, which focuses on the fashion and luxury sector.

"We now have an increasing number of old brands and retailers entering the market," she added.

The recovery began as soon as the vaccinations were received in mid-February.

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