NEW YORK–The market will experience stronger consumer spending in the fourth quarter, and home furnishings will be one of the top categories to benefit, according to Al Meyers, senior vice president of Retail Forward.
Speaking at yesterday’s annual meeting of the Home Fashion Products Association, Meyers said growing consumer confidence and a resurgence in the housing market will fuel consumers’ desire to spend in the quarter. Nevertheless, Meyers cautioned, spending growth during the upcoming holidays will be a modest 1 percent. Home-furnishings and home-decor products ranked second among categories that consumers intend to buy during the fourth quarter, having been mentioned by 62 percent of shoppers surveyed by Retail Forward.
However, tighter availability of credit will permanently alter consumers’ shopping habits, Meyers said. “Retail spending will ease back, not bounce back,” he said. Because of credit problems, more than a third of shoppers surveyed by Retail Forward said they had changed their shopping behavior—in particular in shopping fewer stores, paying for purchases with cash more often than with credit cards, adopting a more price-driven shopping approach and buying only the things they need.
“There will be no return to the old, freewheeling spending days by consumers,” Meyers said.