This Summer, Consumers Are More Conscious As They Prioritize Wellness, Style & Investing In The Future

Welcome to the first edition of “No Fine Print,” named after one of our five core values at Affirm. No fine print means we are completely transparent and honest with ourselves and our customers – from never charging late fees to consistently holding ourselves accountable to do the right thing. I want this newsletter to embody the same value as I share consumer trends and industry insights, and as we explore the future of retail and e-commerce together.

Over the past few months, I’ve shared how the global pandemic has sparked a massive shift to online spending as people adjust to sheltering in place and celebrate major milestones. With shelter in place restrictions beginning to lift and total retail sales rising 17.7% in May, we surveyed 1800 consumers ages 18-55 to learn how they are approaching spending and saving this summer.

We discovered that while people are more conscious about their money, many are ready to spend. One in three people think they will increase their overall spending in the summer months, and one in four will keep their spending consistent with last summer. 

For those who plan to spend, they’ll be investing in things that make them look and feel good. This is good news for retailers that can show consumers they are also value conscious – offering products and ways to pay that meet consumers where they are.

Because people want to feel good heading into this next phase of 2020, accessories, beauty products, and apparel are top of mind. In fact, 50% of people are looking to buy new accessories (hats, sunglasses, bags or backpacks, jewelry or watches), and 45% are in the market for beauty products. Apparel merchants like Rag & Bone and Birdies are poised to be in high demand as the top three wardrobe items people want to buy are sandals or flip flops, workout clothes, and swimwear. Fitness and athleisure merchants, like Manduka and Adidas, will continue to benefit from wellness trends with 40% of people planning to pick up meditation or yoga as a summer hobby.

But while people are spending, they’re also increasing their focus on saving. Over 40% of people are saving money they would have otherwise spent on trips they’ve canceled or postponed, and most people (60%) saved their tax refund. This is consistent both with a recent report from the Commerce Department, which found that savings soared to a historic $4 trillion and with historical data showing 35% of people planned to put more money towards savings in 2009, a year after the last recession. We’ve seen the momentum around savings first-hand at Affirm. Since January, people beta testing our new Affirm Savings account grew their total deposits balance by an average of approximately 60% each month.

You can learn more about how people plan to spend and save this summer by viewing the full survey results here. And to subscribe to No Fine Print, click “subscribe” up top and receive the latest insights into how consumer trends translate into insights for retailers.