HOUSTON, Texas — High unemployment continues to hamper overall consumer spending, but a recent analysis by The NPD Group, a leading market research company, shows that in high unemployment markets there is a discrepancy between front-of-store and hard parts auto aftermarket sales.

Market level sales data from NPD’s Aftermarket Industry Monitor, which tracks point-of-sale data from more than 18,000 auto parts stores, was analyzed based on the market’s unemployment rates. Markets were classified as being well below, below, above, or well above the national unemployment rates.

In addition to the not-too-surprising finding that markets above and well above the national unemployment rate had lower overall sales than other markets, NPD found hard parts sales in these markets fared significantly better than front-of-store categories. Hard parts sales in the highest unemployment markets even slightly outpaced the national average growth rate.

"Economically challenged consumers in high unemployment markets may see front-of-store categories as discretionary or something they can defer purchasing," said David Portalatin, industry analyst for NPD’s automotive aftermarket market research. "Whereas consumers who can’t afford to replace their cars but need a car to search for work and for basic transportation needs, see hard parts as a necessity to keep their car maintained."

"In areas of high unemployment where consumer dollars are stretched thin, it comes down to buying what is needed to get by," said Portalatin. "Understanding each market’s dynamics and the consumers’ mindset, will help auto parts retailers better plan and serve their customers."

For more information about the Aftermarket Industry Monitor, contact Andrew Beilenson at 866-444-1411, or [email protected].