Price Worries Alter Memorial Day Spending Plans

Retailers tend put big-ticket purchases like furniture and appliances on sale over the three-day Memorial Day weekend, as people have a bit more time to think about/make such major buys.

But on the consumer side of the equation, the top category people say they’ll spend money on is food/beverage, which correlates with hosting – with corresponding trips to the grocery and big-box stores. That’s followed by eating at a restaurant or bar, while the third-most popular purchases are for apparel, which is in keeping with Memorial Day (this year on May 26) serving as time for summer prep.

The above are the findings from a pair of recent surveys by done for online shopping site RetailMeNot and summarized in a blog written by Stephanie Carls, a brand ambassador and video host at Ziff Davis Shopping. The first survey of 1000-plus consumers was done in February, while the second involving a similar number of respondents was completed earlier this month.

Given all the tumult in the economy in recent weeks – especially the Trump administration’s on-again/off-again tariff policies – the rest of this article will focus on the results of the most recent questionnaire.

“The most recent results revealed that, over the past month, shoppers have noticed price increases across a wide range of categories – from groceries and dining out to electronics, fashion and more,” Carls wrote. “As a result, many consumers are planning to scale back their summer spending in specific areas in an effort to better manage their budgets – reinforcing the growing demand for savings opportunities and smarter shopping strategies.”

Below are the top five categories where consumers say they plan to cut back on upcoming spending:

1) and 2) In a marked contrast to the earlier survey, the second- and third-largest spending categories were both expected to take hits, with dining out or takeout facing cutbacks by 50% of the respondents, followed closely by clothing and accessories at 49%.

3) Electronics (phones/laptops/gaming devices, etc.), 45%

4) Travel and leisure (vacations/outings, etc.), 42%

5} Home goods and furniture, 41%

“This shift in behavior is especially relevant heading into Memorial Day weekend, as many shoppers plan to take advantage of sales specifically in the categories they were planning to cut back on – using the discounts to stretch their dollars further and still get the items they need for the season ahead,” Carls wrote.

Click here for more from Carls’ blog, including more results from the survey that was done in February.