The Great Resignation, as it’s been termed, has led to a record percentage of workers leaving their jobs and hiring troubles across most sectors. However, many of these individuals will need some source of income later on. Several reports indicate that a large percentage of those leaving their jobs may have done so to start their own businesses. In today’s Insight Flash, we examine where Business Owners are most likely to spend in order to identify which companies may see a benefit from this trend. We look at where in the country Business Owner spend has been strongest, which industries are seeing the most new Business Owner customers, and which brands are most likely to have business owner customers.
Over much of the last year, Business Owners in the South had the largest lift in spend. However, those in the West saw the largest increase versus September 2020 in July 2021 and September 2021. Business Owners in the Northeast saw the largest increase in spend in August 2021, but this quickly declined behind the West and South in September 2021.
Over the last three months, Commercial – Hardlines was unsurprisingly the industry most likely to see new spend from Business Owners on their debit and credit cards with 45% of individuals new to the industry. Less expected, Business Owners appeared to be working on themselves just as much as their companies with new spending patterns on Health Products, Luxury, and Education.
New Shoppers by Industry
Versus other shoppers, Business Owners spent a much larger percentage of their wallets on commercial use like 3M supplies and moving services. While some, likely longer-term successful, Business Owners treated themselves to cruises, those who may be just starting out were more likely to conserve money by shopping for groceries instead of splurging on dining out. Talbot’s, Von Maur, and Chico’s were popular as well, likely as business owners aimed for more professional apparel when meeting with vendors and clients.