Conspicuous Consumption Makes a Return

Spending is in again, and here's where Americans are shopping.
Publish date:

BOSTON (TheStreet) -- Americans have been buying houses and cars, thanks to government support.

But they've needed no aid when spending money on clothes, vacations, home improvements, computers and on dates. Consumer confidence is the highest it's been since September 2008, and BIGresearch found that many Americans plan to spend more this year following a devastating recession.

"Consumers are slowly returning to discretionary purchases," says Scott Krugman, spokesman for the National Retail Federation. "They're by no means 'back' and are only dipping a toe in the water right now."

There are a few areas, though, where consumers are full-on wading. Here are the five biggest areas where consumers are upgrading without any kind of aid:


Apparently, coming out of a recession means no longer wearing an outfit purchased around the same time Katy Perry's "I Kissed A Girl" first charted. According to BIGresearch, 13% of those polled thought it was time to spend more on apparel for themselves.

While that's great news for

Urban Outfitters

(URBN) - Get Report

, which saw revenue increase 11% last month, and other retailers like

The Limited



Neiman Marcus



(TJX) - Get Report

that had gains in April, it isn't exactly setting the clothing retail world ablaze.

Abercrombie & Fitch

(ANF) - Get Report





American Eagle Outfitters

(AEO) - Get Report


Hot Topic



Wet Seal


and even


(TGT) - Get Report

were among the clothiers continuing to stitch together an existence through revenue downturns. It also doesn't mean that consumers are sharing the wardrobe wealth, as only 5.6% said new clothing for their children is a post-recession priority.


This may be the year someone gets bludgeoned with a blunt object for using the term "staycation." In the most indiscrete return to discretionary spending of the post-recession era, 13% of survey respondents told BIGresearch they need a vacation and are willing to shell out more to take one.

A survey by travel search engine Kayak yielded similar results, with 95% of respondents saying they intend to travel this year, with 41% saying the economy won't affect their plans.

Travelocity also found that 49% of those surveyed planned to increase their travel this summer, compared to just 10% in 2009. This is either fortuitous or absolutely terrible timing. For the optimistic traveler, Travelocity says the cost of a hotel room is down 14% in the U.S. and 9.5% abroad since 2008, while vacation rental site HomeAway finds that rentals are roughly half the price of hotels and 38% of vacation home owners are offering a percentage off of their rate this year.

For pessimists, it should be noted that Travelocity also found that domestic airfares are up 9%, with international flights costing 10% more on average.

Home improvements:

Once consumers feel fairly secure about their employment status and financial future, it's time to stop jiggling the handle. We've hinted about a home-improvement turnaround before, but BIGresearch's survey found that 13% of respondents are ready to spend more on sprucing up their property. The U.S. Census Bureau reported more than 3% growth in home and garden sales last month compared to March, while Harvard University's Joint Center for Housing Studies predicts 5% growth in home improvement spending in 2010.

In terms of spending,

American Express'

(AXP) - Get Report

Spending and Saving Tracker predicts that 85% of its survey respondents will spend an average of $6,200 before next January. What will they spend on? According to NPD Group, home improvement shoppers have already spent 44% more on garage storage and organization, 37% more on walk-behind mowers, 22% more on leaf blowers and 21% more on sanders in March and April of this year than they did during the same period in 2009.

Retailers are buying into that line of thinking, with both

Home Depot

(HD) - Get Report



(LOW) - Get Report

predicting 2.5% to 6% growth this year.


Before Steve Jobs dislocates a shoulder patting himself on the back for singlehandedly ending the recession by selling millions of


(AAPL) - Get Report

iPads, he should know Americans are spreading the wealth when it comes to swapping out their computers.

Researchers at


(IT) - Get Report

found that PC shipments to the U.S. increased 20% in the first quarter from the same period in 2009. Though Apple's market share grew 34% in that period, it paled compared to 50% improvements for both Acer and Toshiba. Meanwhile, NPD says desktop sales improved 33%, with


(MSFT) - Get Report

Windows desktop sales up 15% since the launch of Windows 7 after dropping for 21 of the previous 22 months.

Date nights:

Yes, we would like fries with that. Though 18% of Americans visited restaurants less frequently so they could do other things in 2009, according to NPD, only 14% did the same this year. That may not seem like much, but those small steps are exactly how restaurants are earning their way back into the black.

BIGresearch's survey found that 8.4% of consumers think it's time to spend less time at the stove and more time making reservations. That's going to help, as NPD notes a 0.8% decline in restaurant revenue from 2008 to 2009 didn't stem from shrinking bills -- which actually jumped 3% -- but a 3% drop in traffic for that period and 14 consecutive months of decline overall.

This year, the consumer is already taking up more places at the table. According to the Consumer Price Index, the amount spent on food away from home is actually up 1.2% from March 2009 compared to a 0.7% decline for food prepared at home.

That's put a better taste in the mouths of folks at

Yum Brands

(YUM) - Get Report


Texas Roadhouse

(TXRH) - Get Report


Domino's Pizza

(DPZ) - Get Report



(MCD) - Get Report


Darden Restaurants

(DRI) - Get Report

, which all posted improved earnings.

-- Reported by Jason Notte in Boston.

Jason Notte is a reporter for His writing has appeared in The New York Times, The Huffington Post,, Time Out New York, The Boston Herald, The Boston Phoenix, Metro newspaper and the Colorado Springs Independent.