Cash rules. More than half the American public — 54 percent — is favoring cold, hard cash as the way they pay for their purchases, according to a new report from market researcher Packaged Facts.
With unemployment hovering at nearly 10 percent and the housing market stagnating, many are reserving their credit lines “for emergency purposes only,” stated the report, “Consumer Payment Trends in the U.S.,” an assessment of people’s payment activity since spring 2009.
This caution with credit and reliance on cash are signals that shoppers are still focusing on living within their means.
“The spirit of temperance and moderation will continue through 2010 and perhaps through 2011,” for people who will not be able to “get out of deep debt” in the next six months, projected David Lummis, editor of the new report. Using cash, checks, and debit cards seems to “foster a sense of control over personal finances,” Lummis added.
While about two-thirds of American adults, or 67 percent, have a credit card, only 53 percent of adults are considered “active users” of them, Packaged Facts said, based on its own consumer research through winter 2009 as well as an Experian Simmons spring 2009 survey of 25,000 people ages 18 and older. Active users were those who had used a credit card to buy something within 30 days of the Experian Simmons survey.
Roughly one in four of 1,530 women polled by consultants WSL Strategic Retail in November said they’d cancelled credit cards “so I will not accumulate debt anymore.”
Those who have not been using credit cards are commonly “opting to use debit cards” for purchases, drawing on their bank accounts in cash-equivalent transactions. About 68 percent of adults in the U.S. have a debit card, Packaged Facts estimated.
“It’s been a pretty steady, constant push back against credit cards by about one-third of the population, for the past 18 months,” noted Candace Corlett, principal partner in WSL.
Generally, this group has been avoiding “going out to browse and ending up spending $400 a few hours later on things they didn’t really need,” Corlett added. “They’re saying they don’t ever want to get into the same kind of [pre-recession] credit card debt again.”
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews