According to a study by First Insight Inc. The report revealed that consumers’ shopping habits have changed as a result of rising prices, with 42% now shopping for deals such as sales or shopping the clearance racks; 40% now staying within a budget, 28% buying less overall, and 25% shopping in bulk stores or using warehouse retailers.
Rising prices are causing most consumers to look for less expensive ways to shop.
Seventy-five percent of shoppers have less confidence to spend money today as the rate of inflation soars to a 40-year high, according to a study by First Insight Inc. The report revealed that consumers’ shopping habits have changed as a result of rising prices, with 42% now shopping for deals such as sales or shopping the clearance racks; 40% now staying within a budget, 28% buying less overall and 25% shopping in bulk stores or using warehouse retailers.
In total, 82% of consumers are looking for less expensive ways to shop due to inflation.
The report also showed that nearly all (97%) consumers are reprioritizing how they spend. Groceries ranked as the most important (56%) priority, followed by gasoline (43%), housing costs (29%) and health care (18%).
The lowest spending priorities include home décor (8%) which surged during the pandemic, as well as two of the sectors which the pandemic hit hardest: travel & vacations (7%), and gym memberships (7%).
Other highlights from First Insight’s “The State of Consumer Spending: Inflation Impacting Consumer Confidence” are below.
Highest Inflation Pain Points: Gasoline, groceries, and dining out top the list of the twelve most acute inflation pain points for consumers today. Sixty-six percent of consumers rank high gasoline prices as the number one category affecting their daily lives, followed by the high cost of groceries (58%), dining out (29%), and vehicle prices (21%).
Higher Prices Noticed: Rising gasoline prices have been reported by 72% of consumers, with 69% of consumers noticing higher grocery prices, 57% higher dining out prices, 51% higher vehicle prices, 42% higher prices for apparel/footwear/accessories, and 41% higher prices for household goods.
at Chain Store Age.
