The last few months have been a wild rollercoaster for the industry as a whole.
When looking at the entire industry, retail sales fell 3.5% in May. But when you exclude auto sales, the rest of the industry saw a 0.5% increase.
This week is dedicated to uncovering trends and factors that are making a big impact on how sales in different industries.
THIS WEEK’S HIGHLIGHTS
- DTC subscriptions: Why more and more companies are jumping on the DTC subscription wave.
The auto downfall: Everything you need to know about the sudden drop in foot traffic.
Q1 Benchmark Report: Click HERE to download the report.
FOOT TRAFFIC INDEX
Here’s a look at last week’s foot traffic compared to the same time last year.
FOOT TRAFFIC TRENDS
Industry insights so you can convert your foot traffic into more sales.
Auto weighs down retail
Last week we learned that both the furniture and mattress industries saw increases in their daily revenue in May. When looking at the retail industry as a whole, retail sales fell 3.5% in May.
Although the industry saw a slight decrease, if you exclude the auto industry, retail as a whole would’ve increased by 0.5% during the month. The combination of inflation and auto chip shortages has resulted in people waiting to pull the trigger on a new vehicle.
Over the last month, spending at gas stations has increased 4%. Compared to the same time last year, spending is up a whopping 43.2%.
Online shopping also saw a slow down in May with a 0.1% decline in activity compared to the prior month’s 0.7% increase.
DTC subscriptions on the rise
As we’ve touched on in the past, DTC subscription services have become increasingly popular.
Although subscription services usually have a higher acquisition cost, the lifetime value of the customer skyrockets. A new report from PipeCandy and Rodeo predicts that as many as 75% of DTC brands will have a subscription-based offering by 2023.
On average, DTC subscribers tend to be urban women, between 25 and 44 years of age, earning a salary between $50,000 and $100,000 and living on the East Coast, the report found.
Despite the average audience being between 25-45, younger generations have grown up with subscriptions and will be among the first to adopt once they begin making money of their own.
Retail Snippets
Changing tides: Why the tech transformation has become imperative in retail.
Newest Mission: Apple becomes the latest company to join the BNPL boom.
Holiday sales: The biggest mall owner in the U.S. hopes to create a new sales holiday as inflation surges.
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