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As COVID-19 lockdown memories begin to fade, consumers are ready to invest their time — and money — in experiences they were deprived of during the pandemic. According to Bloomberg Economics, <a href="https://www.bloomberg.com/news/articles/2021-03-17/retailers-prepare-for-wave-of-shoppers-as-covid-vaccines-rollout?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707" target="_blank" rel="nofollow">Americans saved an estimated $1.7 trillion</a> since the beginning of the pandemic through January, and businesses are expecting a significant rebound in consumer “revenge spending” over the next few months.The term “revenge spending” <a href="https://stories.pinduoduo-global.com/articles/revenge-spending-vs-frugal-consumerism-in-post-covid-economy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707" target="_blank" rel="nofollow">gained popularity in China</a> last April when the country began to return to normal after its early experience with the virus. According to Bloomberg, the result was a surge in retail sales. U.S. jeweler <a href="https://www.tiffany.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707" target="_blank" rel="nofollow">Tiffany &amp; Co.’s</a> China sales surged 90% in May compared to the previous year, and <a href="https://www.hermes.com/us/en/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707" target="_blank" rel="nofollow">Hermes</a>, the French luxury label known for its $10,000 handbags, raked in $2.7 million in one day from a store reopening in Guangzhou.The U.S.’s projected surge in revenge spending comes as <a href="https://1851franchise.com/franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519#home">nationwide worker shortages</a> continue to frustrate restaurant owners eager to take advantage of <a href="https://1851franchise.com/new-study-reveals-how-many-americans-are-ready-to-dine-out-again-2715641#home">pent-up demand for dining out</a>. Although a <a href="https://morningconsult.com/return-to-dining/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707" target="_blank" rel="nofollow">recent Morning Consult study</a> revealed 60% of consumers are comfortable dining out as of late April, restaurants are struggling to find workers to meet the demand. One McDonald’s franchisee, for example, is offering applicants <a href="https://www.businessinsider.com/mcdonalds-pays-50-for-job-interviews-highlighting-hiring-struggles-2021-4?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707#:~:text=A%20Florida%20McDonald's%20is%20paying,still%20struggling%20to%20find%20applicants&amp;text=One%20McDonald's%20in%20Florida%20is,are%20%22scrambling%20for%20help.%22" target="_blank" rel="nofollow">$50 just to interview</a>.According to a <a href="https://www.franchising.com/articles/how_to_deliver_an_incredible_customer_experience_to_capitalize_on_revenge_s.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707" target="_blank" rel="nofollow">recent Franchising.com article</a>, businesses will have to “consistently deliver superior customer experiences and a high level of employee engagement” in order to capitalize on the revenge spending wave. The article also reminds business owners that “boosting your customer retention rate by as little as 5% can increase your profits anywhere from 25% to 95%,” meaning the more a business invests in its customer service skills, the more happy and loyal customers it will have.

What Is Post-Pandemic “Revenge Spending,” and What Does it Mean for Business Owners?

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What Is Post-Pandemic “Revenge Spending,” and What Does it Mean for Business Owners?

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