Global Insight Flash: Consumer Edge Global Transaction Data Explores Disparity in Spending Growth by Geography

The macroeconomic factors influencing global consumer spending trends are currently creating a very mixed picture. Layoffs continue to make headlines around the world, while at the same time stock prices are reaching new highs. Inflation seems to be steadying and then resurging.  Interest rates remain high even as debt and delinquencies rise. Yet spending is holding firm. With all of these conflicting signals, it may feel difficult to predict how global shoppers are reacting and plan appropriately for your business. Consumer Edge’s Global Transact data shows that this difficulty isn’t an illusion, but is rather coming from two very divergent paths among global consumers.

Global Consumer Spending Trends by Subindustry

Last month’s year over year spend trends by subindustry showed a stark disparity in areas of spending growth. On the one hand, there were strong signals of tighter wallets across the world with more shoppers year over year resorting to Point-of-Sale Lending to make purchases, Consignment & Thrift shopping instead of new goods, value-seeking at Warehouse & Club stores and Dollar stores, and increasing Automotive Services instead of purchasing new vehicles. Yet, at the same time, there was increased spend across electronics categories as new technologies increased shopper appetites, with year over year spend growth high for Computer & Electronics Hardware, Wearable Electronics, and Software. 

This kind of divergence provides rich opportunities for companies in all subindustries to capitalize on targeting the branch of the divergence that aligns best with their unique strategy. High-end apparel retailers can continue to push their top-of-the-line merchandise, while discounters can emphasize their value proposition. Home & Garden merchants can position themselves for large redesigns or smaller accents. Travel and Entertainment companies can package luxury getaways and staycation options. 

Take a Strong Position to Capitalize on Spending

The one thing to be cautious of in this environment is to avoid positioning yourself in the middle.  Reasonable quality for a reasonable price is unlikely to appeal to either segment of the bifurcation, and merchants that take this course may end up holding the moderately priced bag.

Consumer Edge is a leader in data-driven insights focused on the global consumer, with decades of experience providing leading hedge funds, private equity and venture capital firms, and corporates with alternative data. With data spanning credit and debit card transaction data, scanner data, and email receipt data, we boast deep coverage on hundreds of industries, subindustries, tickers, and symbols year-round. Reach out about CE Transact, CE Vision, or our other products to see how you can benefit from CE’s unrivaled consumer intelligence.

Stacie Rabinowitz is the VP of Product Research at Consumer Edge. Explore more of her insights here and follow her on LinkedIn.