Stressed consumers are still finding ways to splurge

June retail sales data released Thursday showed a slowdown, with consumer spending up just 0.2% in June, compared to 1% in May. (Sales were up 0.7% if you exclude gas station spending from the numbers.)

Pulse check: Consumers are stressed. They don’t like the prices they’re paying at the grocery store and gas station. But splurging once in a while can make them feel better — retail therapy, anyone?

“I impulse bought these little side tables from TikTok shop,” said Katie Thomas, a consumer behavior analyst at the Kearney Consumer Institute.

She said people are still spending on things that bring them joy. “A lot of people actually see a vacation or a weekend trip as something they’re willing to protect and willing to sacrifice elsewhere for.”

So maybe they buy off-brand at the grocery store as they’re saving up for a super-expensive plane ticket. Or a new pair of shoes from their favorite luxury brand, said Sonia Lapinsky at Alix Partners, which just did a footwear survey.

Lapinsky said shoppers are still buying expensive shoes, but fewer pairs.

“So 30 to 40% of consumers are saying they want to buy the brands that they want. They’re just not going to buy as many pairs of shoes as they have in years past,” she said.

Dan North, senior economist at Allianz Trade North America, said this pattern of consumer spending will continue as long as people feel secure in their jobs.

“It’s a no-hire, no-fire situation. That’s for sure. But if you look at the unemployment rate, and the amount of jobs created every month, this is what’s helping people feel secure,” he said.

If the job market holds up, North said the consumers will, too.