Shoppers Continue to Switch Brands, Shop Less As Inflation Continues in August
Retail data firm 84.51° has shared new insights into how customers are shopping in the current inflationary climate.
The Consumer Digest: August report found that concern for finances is at an all-time high, and that many consumers are shopping less frequently, buying fewer items, and switching to lower priced brands, including private labels.
While concern about COVID-19 is waning, shoppers are still concerned about pandemic-related inflation for grocery and household items. According to 84.51°, 48% of consumers are feeling uncomfortable with their finances in August, the highest percentage the firm has polled since October of 2021. 38% of consumers say they are shopping less frequently than they normally do for groceries as a result of high prices, while 43% say they are purchasing fewer items during their grocery trips.
Customers are noticing ‘shrinkflation,’ or smaller packaging sizes for the same price, as well. When asked which categories consumers have noticed shrinking pack sizes in, 51% said chips, 37% said cereal, 29% said candy bars and 26% mentioned toilet paper.
With more shoppers of all incomes being hit by inflation, High Price Sensitive shoppers are significantly more likely to notice shrinking pack sizes. Only 27% of those surveyed did not notice smaller pack sizes of their items.
Unsurprisingly, households with children have a higher perception of price increases. However, the Consumer Digest: August report showed that households with kids are not cutting back on spending more drastically than those without kids. In response to inflation, households with children enjoyed cooking at home more (28% vs. 18%) and cooked more from scratch than in July than those without children (36% vs. 29%.)
The full report from 84.51° can be found here.