Changing consumer behavior

Sources: Bloomberg and Wells Fargo Investment Institute. Retail sales: monthly data from January 1, 2005 to February 28, 2022. E-commerce sales: quarterly data from January 1, 2005 to December 31, 2021.

Key Takeaways

  • Consumer spending, returning to its pre-pandemic trend, appears poised for a rotation from spending on goods to frontline services industries (like travel and entertainment) as the pandemic subsides and the economy reopens.
  • We expect e-commerce’s share of online shopping to continue growing, albeit at a slower pace than during the pandemic.