Is Unemployment Influencing Aftermarket Sales?
Is Unemployment Influencing Aftermarket Sales?
The NPD Group provides market research for understanding business and consumer trends. Aftermarket Perspectives is a communication from NPD that delivers insights into current issues in the aftermarket industry.
Excerpt from NPD's November 2009 issue of Aftermarket Perspectives:
We [NPD] found that markets with lower than average unemployment had higher sales growth than markets with higher unemployment. While that finding may not be too surprising, a deeper look reveals some interesting differences.
. . . hard parts sales in high unemployment markets fared significantly better than front-of-store categories. Consumers searching for work in these markets may find themselves unable to purchase a replacement vehicle during these trying times. But these consumers still may depend heavily on an existing vehicle to continue the job search, transport other family members to work, and serve their households’ critical transportation needs. As these vehicles need replacement parts, even cash-strapped consumers may find such expenditures necessary. Hard parts sales in the highest unemployment markets even slightly outpaced the national average growth rate.
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