The most recent list of Top 10 consumer trade ups as tracked by The Boston Consulting Group appears to support our belief that consumers expect to spend more time at home in 2009. Over the last four years, there has been a significant change in consumer focus. Big ticket items such as home/ apartment purchases, furniture, and travel/ vacations no longer top the list. Matter of fact, they no longer make it.
Instead, in-home items such bedding and home entertainment have moved into the top 5 and food that can be prepared at home (meat, fruits and vegetables, and fish and seafood) is an area of greater importance. Therefore, it’s no surprise that sit-down restaurants have also dropped down on the list.
The consumer purchasing survey simply reaffirms our view that investments are increasingly “need-based” versus “want-based.” As a result, consumers looking to spend more on their existing homes. We expect companies such as BBBY, WSM, and WMT to be the beneficiaries (see our 4/8 post “Our Home Furnishings Call is Getting Tough to Argue With”).