The beginning of the year brought changes for both American consumers and retailers, as payroll tax increases resulted in less spending among shoppers and different pricing strategies among merchants. However, recent research has revealed that some shoppers are still splurging on "little luxuries" despite the decrease in take-home pay.

A study by the National Retail Federation (NRF) and BIGinsight.com revealed there are several products that consumers consider "expendable," but are still being bought even though spending levels are changing. These items include high-end jewelry, memberships for social clubs, designer handbags and cleaning services.

"Traditional discretionary expenditures in recent years have fallen victim to tighter family budgets," said BIGinsight consumer insights director Pam Goodfellow. "While we expect consumers to remain cautious with their spending, it appears that shoppers are also allowing some of those 'little luxuries' to creep back into their budgets."

On the other hand, separate NRF research found that 24.5 percent of shoppers surveyed stated they would be cutting back on luxuries in response to the payroll tax hikes. Other areas seeing less spending include clothing, entertainment and travel.

This entry was posted by Retail Pro on Wednesday, February 27th, 2013 at 3:58 am .