The NPD Group has determined that consumer spending on general merchandise was 15 percent higher in 2021 compared to the preceding year with a six percent increase in unit sales.  The disparity between total spending and number of units attests to inflation.

The analysis conducted by the NPD Group demonstrated that increase in spending in 2021 occurred during the first half of the year with 40 percent of the entire year’s revenue in March and April.  There was an evident decline in spending as the year progressed with the fourth quarter accounting for 20 percent of the annual gain.

The reason for increased spending was attributed to reduced concern over COVID following deployment of vaccines coupled with government stimulus payments.  The study did not classify expenditure according to online or brick-and-mortar, but it is evident that online spending increased disproportionately to in-store, especially during the first half of 2021.  Other factors that influenced spending included supply chain disruption with purchasers adopting a “spend in the here and now” mindset.  Home confinement created a demand for entertainment necessitating expenditure on audio visual equipment, exercise machines and kitchen appliances as families increased home cooking and dining.

As the Nation emerges from infection with the Omicron variant, reversion to previous purchase patterns evident in 2019 will be slow and habits created over the past two years will continue into the intermediate future.