Consumer Discretionary - Industry
Consumer Discretionary are non-essential goods and services that represent wants rather than needs. Unlike Consumer Staples which attribute to people's necessities, Consumer Discretionary are products that consumers can usually live without and don't necessarily need in their day-to-day lives. Consumer Discretionary is more sensitive to economic downturns as consumers can quickly tighten their wallets during periods of high inflation, unemployment and economic uncertainty. Cars, household appliances, specialty items, luxury goods, and leisure are considered part of the consumer discretionary sector. Some of the companies that fall into the consumer discretionary sector include Amazon, McDonald's, Starbucks, La-Z-Boy, Lululemon, Walt Disney, Nike, and Tesla.
MORE ABOUT CONSUMER DISCRETIONARY
The Consumer Discretionary sector is one of the eleven sectors of the US economy and represents a significant portion of consumer spending on non-essential goods and services.
The sector is highly impacted by economic cycles as the purchase of items within it is directly related to disposable income and high employment, and how people are willing to spend.
Conversely, Consumer Staples are products and services that are necessities in people's lives.
Consumer Staples stocks can be more resilient to changes in the business cycle since they provide essential items like food and beverages.
CONSUMER DISCRETIONARY INDUSTRIES
Hotels, Restaurants, and Leisure.
From sit-down restaurants to hotel operations, these brands have a tight grip on consumer spending. They include cruise operators, resorts and casinos, and many others.
With increased accessibility to mobile devices, faster internet, and quick shipping, demand for online shopping has significantly grown.
Textiles, Apparel, and Luxury Goods.
This industry includes makers of specialty items such as designer clothing, fine jewelry, and luxury furnishings.
Diversified Consumer Services.
Companies in this industry provide legal or tax counsel, interior design services, specialized education and auctions, among other offerings.