Americans are getting pickier, but they are still spending on hot items

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Investors are analyzing US credit card spending data to understand which retailers are likely to perform well this summer. While some shoppers are being selective and prioritizing non-essential items, trends are favoring specific categories.

Sales are rising for trendy clothing, sportswear, and footwear, with Birkenstocks, Abercrombie & Fitch jeans, and Vuori athleisure leading the pack. Conversely, big-ticket homeware and electronics are experiencing a decline compared to last year. This is likely due to a surge in demand during the pandemic, with consumers now focusing on refreshing their wardrobes.

This divergence is reflected in stock prices. Abercrombie & Fitch has nearly doubled in value this year, while Home Depot is down. Retailers that offer popular brands are thriving, with Dick’s Sporting Goods upping its sales forecast thanks to high demand for footwear and athletic apparel.

However, not all retailers are seeing success. Victoria’s Secret, Under Armour, and North Face are experiencing declining sales. These companies are now adjusting their merchandise to win back customers.

Source: Reuters

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