According to the news, there is increasing evidence that US consumers are becoming more picky when it comes to non-essential products, which has led to significant differences in retail sales performance.

Recent quarterly results from retailers show consumers are being selective in purchasing non-essential "nice-to-have" goods. For example, they are abandoning electronics, yet are not shy about spending money on trendy products such as wide-legged jeans.

This is obviously favorable for stylish products such as BIRK.US shoes, ANF.US jeans, and Vuori sportswear, but not so favorable for products of Home Depot (HD.US) and Best Buy (BBY.US).

Zak Stambor, an analyst from Emarketer, said " Consumers are becoming more picky about when and where they consume. They seem willing to splurge on expensive items, whether it's a pair of Hokas or a pair of BIRK shoes."

According to data from market research company GlobalData, demand for trendy products drove a 3.2% increase in clothing sales, a 1.9% increase in sporting goods sales, and a 0.4% increase in footwear sales in the first quarter of 2024 compared to the same period last year.

However, big-ticket items, especially those related to living space, are disappearing from consumers' shopping lists. Sales of electronic products in the first quarter fell 1.9% compared to the same period last year, while sales of household items fell 4.2%.

Joseph Feldman, an analyst at Telsey Advisory Group, said "Parts of the market like outdoor grills, patio items...TVs, sofas, beds, have the recent softness. During the pandemic, this demand was pulled forward, and now we're coming down from that peak, so you still see some softness."

This difference is particularly evident in retailers' stock prices. ANF.US stock has almost doubled this year, while HD.US stock has fallen 4.5%.

Keep up with the trend of consumption.

Last week, executives at Nordstrom (JWN.US) said sales growth of sports apparel and footwear in the first quarter was driven by some popular brands including Vuori, Hoka and Adidas (ADDYY.US). The department store also set up designated spaces at its stores to promote the ON.US running shoes endorsed by Roger Federer, Sam Edelman sandals and BIRK shoes.

David Swartz, an analyst at Morningstar, said that across the U.S. retail sector, "some of the stronger retailers are performing well. Some of the brands that are doing well are the ones that are innovating." Department stores and other retailers have been working to keep up with market trends.

Dick’s Sporting Goods (DKS.US) said during an earnings call with investors that the company plans to continue its strategy of offering sought-after brands such as Hoka and ON.US running shoes.

Last week, this sports goods retailer raised its annual profit and sales forecast due to strong demand for footwear and sportswear. Its stock has risen nearly 45% this year.

Analysts say demand for other retailers, including VFC.US, Victoria's Secret (VSCO.US), and Under Armour (UAA.US), has not rebounded yet. They say consumers may be less inclined to shop at these stores.

The three retail chains have seen year-on-year sales declines in the recent quarter, leading them to adjust their merchandise to better attract consumers.

Kevin Plank, founder of Under Armour who returned as CEO in April, said "This is not the vision I had for Under Armour in our path of growth. That said, we will use this turbulence to rebuild our brand and our business."

Credit card data also reveals a mixed start to the year for the retail industry.

From credit card data, there is also evidence of a mixed start to the year for the retail industry.

New York research firm Consumer Edge, which has hedge fund and private equity clients, analyzed data from about 40 million US credit card transactions to identify winners and losers in the retail sector. The report showed that in the six months leading up to May 28, consumers spent about 30% more on Vuori sportswear and 25% more on Skims underwear compared to the same period last year.

It is understood that Skims is an underwear clothing company owned by Kim Kardashian and is expected to go public later this year or in 2025. Last year, there were reports that Skims was in talks with investment firm Wellington Management for a new round of financing, with an estimated valuation of about $4 billion.

According to Consumer Edge's data, consumer spending on Abercrombie & Fitch products, as well as Hoka and On running shoes, has also increased compared to a year ago.

However, the company said that consumer spending on Victoria's Secret products fell by a mid-single-digit percentage, while Under Armour saw a high single-digit percentage decline and The North Face saw a mid-double-digit percentage decline.

Michael Gunther, director of research at Consumer Edge, said that in the clothing and footwear sectors, "newer, more niche companies are doing better, and we see them taking market share from older, established companies."