84.51°: Shoppers of All Incomes Continue to Cut Back on Spending
With holiday gatherings around the corner, a growing number of shoppers are concerned with finances and are more willing to switch to lower cost brands, according to 84.51°’s November Consumer Digest report.
The report from Kroger’s retail data and insights company details how consumers are feeling financially heading into the holiday season, and how they plan to spend. According to 84.51°’s research, 69% of shoppers cited concern about inflation, and 28% of consumers felt uncomfortable about their finances, a number that has steadily grown since February of this year.
To save money, shoppers both below and above the $100k household income threshold are switching to lower cost products, including from private label brands. Of those making less than $100k per year, the top categories that shoppers were willing to “trade down” in were personal care (44%), beauty care (44%), cereal (43%) and health care (36%). For those making more than $100k, the top categories were the same, but the percentage of those willing to trade down was smaller.
Income earners above and below the $100k mark will also work to stretch their holiday spending in nearly identical ways. Of all consumers 55% said that price was the most important factor when it comes to holiday grocery shopping, followed by quality (39%) and quantity/size (34%). A majority (63% under $100k per year and 56% over $100k per year) said they did not plan on splurging on groceries this holiday season.
Both income groups agreed that cutting back on impulse purchases, buying items on sale, switching to less expensive brands, setting a budget and simplifying holiday menus were the best ways to save this holiday season.
The full November Consumer Digest report from 84.51° can be found here.