Marketplace All-in-One The "little treat" economy
Sep 16, 2025
Kristen Schwab, a Senior reporter at Marketplace, dives into the intriguing dynamics of retail spending, explaining how affluent consumers are leading a surge in purchases despite economic uncertainties. She introduces the concept of a 'culture of treats,' where small luxuries are now a part of everyday life. Kristen also discusses the Y2K fashion revival and how brands like Gap are tapping into nostalgia to connect with Gen Z. The conversation highlights the blending of luxury and accessibility in today's market.
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Consumers Still Spending Despite Headwinds
- Retail sales rose 0.6% in August and marked a third consecutive monthly increase, showing consumer spending resilience.
- Consumers appear confident despite tariffs, a weakening labor market, and rising inflation.
Nominal Sales Need Inflation Context
- Census retail numbers don't adjust for inflation, so higher sales can reflect higher prices as well as higher quantities.
- Analysts must parse nominal sales against inflation data to judge real consumer demand.
Winners And Losers In Recent Retail Data
- E-commerce, clothing (back-to-school), and food & drink saw notable increases in August.
- Furniture lagged, possibly due to tariffs on China-made furniture and a stagnant housing market.