By Tom Williams
Prices are rising for just about everything, forcing millions of Americans to make increasingly difficult choices. One must ask, “How are shoppers coping with this record 40-year high staggering inflation?”
According to a new report from market research firm The NPD Group, more than 8 in 10 consumers are planning to rethink or even reduce their product spending in the next three to six months. Below is what some of America’s retailers say about what shoppers are doing, learn more here.
- NPD data show consumers were already making fewer general merchandise purchases in the first quarter of 2022 versus the same period a year ago. Consumers bought 6% fewer items at general merchandise stores in the first quarter of this year versus a year ago, and the frequency with which they shopped also fell 5% in the quarter from a year ago.
- Walmart revealed in its latest earnings call last month that inflation has changed its shoppers’ buying patterns, with customers trading down to cheaper private-label meat and dairy products, buying fewer items per shopping trip, and shying away from discretionary items.
- Rival Target painted a similar picture during its most recent earnings call, saying shoppers were holding back on nonessential purchases of home goods, furniture, TVs, and kitchen appliances.
- Even discount stores like so-called $1 retailers (many of whom are now actually $1.25 stores) are noting their very wallet-conscious shoppers are feeling squeezed by inflationary “headwinds.”
- Dollar General said on its recent earnings call that customers are shopping “more intentionally” at its stores, trading down to lower-priced products.
So, where are shoppers cutting back or trading down? Price-conscious consumers are economizing at the grocery store as inflation takes hold. Among US adults who are cutting back on groceries, 41% are buying fewer items from name brands, and 29% are spending less on alcohol and spirits. Meanwhile, most are picking up as many pantry staples, like pasta and rice, canned goods, and nonalcoholic drinks, as usual.
These cost-cutting habits may be here to stay- at least in part. Like Covid has had a lasting impact on behaviors, this round of inflation may go as well in terms of shopping habits. See the chart below what consumers are doing to cope and learn more here.
Aside from shifting our purchases in-store, what other things can we do to battle inflation?
- Shop Discount Stores: As Bloomberg reports, many consumers are turning to the likes of Dollar Tree and other discount stores in response to rising prices. Further, around 50% of consumers are responding to inflation by pursuing promotions more aggressively. This can involve signing up for store loyalty programs, using coupons, or shopping at outlet stores.
- Buying In Bulk: Some consumers are trying to combat the high cost of food by buying in bulk. This can involve going to a warehouse club like Costco, which has recently seen an increase in shoppers, or buying food from a grocery store that offers bulk discounts. On the other hand, buying in bulk may cause you to buy and consume more than you need. Here is a resource for food storage tips.
- Buy What You Need: For example, many have found that some laundry products – washers, dryers, and detergents – waste money. So here are some tips to avoid them. Many have been putting off the new “eat less” diet – now is as good of a time to start as ever. If one really looks at what we buy, there are probably endless areas that go in the “nice to have” as opposed to necessities.
- Plan Your Trips: Now, with fuel costs that are off the charts, many of us will need to start planning better our shopping trips and other things we do as well. One can perhaps combine trips and make fewer of them. Many have found that one can reduce their mileage by 10%, which can add up to significant savings without significantly changing your lifestyle.
- Start a Garden: This is an obvious one, but many do not have the resources to start a garden. However, if you do, here, and here are resources that may help. The National Gardening Association’s survey found that the average household that grows fruits and veggies saves about $500 a year.
- Get Social: One part of our budget is in the area of food entertainment. Have you actually sat down and figured out how much you spend at restaurants? Perhaps it’s time to go back to the way we used to entertain ourselves – invite people into your home for a meal. Besides, restaurant food often is not that good unless you pay a lot. It also will help you discover new friendships. However, choose your friends well and turn off that smartphone when they come.
Rising inflation has made people feel anxious and overwhelmed. More than 40% of US adults said that money concerns have a negative impact on their mental health, according to a recent survey from Bankrate. Of those who said money took a toll, most cited feeling stressed, anxious, and overwhelmed. If you are under stress, you are not alone – check out the video to learn more.
I am sure you may have some ideas on how you are coping and fighting back against inflation. Give us some of your ideas on combating inflation in the comment section below.
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RWR original article syndication source.
Source: Chart of the Day: How Are Shoppers Coping With This Staggering Inflation?
