Americans Redefine their Spending Essentials

Economic woes have many people curtailing their spending, but according to a new survey sanctioned by the National Retail Federation (NRF), there are some items that they just won’t go without.

Among the must-have’s are tried-and-true style essentials, such as discount shopping for apparel (43 percent), hair cuts and colors (40 percent), and a new pair of shoes (24 percent).

Where are they scaling back? Many people believe popular beauty indulgences like facials are expendable (89.8 percent). Other items on their “hit list” include luxury

handbags (92.2 percent), high-end cosmetics (90.7 percent) and specialty shopping for apparel (90.7 percent).

The survey, administered by BIGresearch to more than 4,000 participants nationwide, suggests that Americans are redefining what’s “expendable” and what’s “untouchable” to adjust to the new economic climate.

When forecasting retail industry trends in 2009, NRF Chief Economist Rosalind Wells said, “Shoppers will be seeking value and trading down to discount and off-price retailers in order to stretch their purchasing power.”

Phil Rist, executive vice president, Strategic Initiatives, BIGresearch, added, “While many people have opted to trade down, some refuse to sacrifice certain luxuries, cutting items they feel are expendable to compensate.”