Strategies to Keep Consumers Coming Back
Data and technology research firm Numerator keeps a close watch on consumer behavior, market forces, and the retail industry. A recent blog by one of the company’s executives took a look at consumer perceptions of recession and how that impacts their spending and savings habits.
The blog, “The Modern Recession: Considerations for Brands & Retailers,” discusses how companies can implement strategies now to continue to win consumers’ spending. Here are eight highlights from the article:
- 72% of consumers believe we are already in a recession, even though it has not been officially declared.
- Gen Z was not of age during the last recession, and they are likely to view one very differently than older generations who have experienced one previously. Currently, only a third (33%) of Gen Z consumers say they’re concerned about an economic recession, compared to over half of Gen X’ers (50%) and Boomers (53%).
- 73% of all consumers are uncomfortable taking money out of personal savings or retirement accounts, and over half of consumers (59%) are uncomfortable spending money on non-essential products, services or travel.
- Consumers are increasing money-saving measures to combat rising prices, including decreasing spending on non-essentials (51% of consumers), searching for coupons, promos or sales (51%), and stocking up on essentials when they’re on sale (50%).
- Despite this consumer desire for cost-savings, as of this fall, overall promotional ad block volume has declined versus 2021 (down 5% compared to last year for the month of October).
- The retail landscape has changed dramatically since The Great Recession ended over a decade ago–online CPG sales have grown over 350% in the last five years alone, and 84% of US households now turn to eCommerce retailers to purchase grocery, health & beauty, household, pet and/or baby products (up from 62% in 2017).
- Value chains have also grown since 2008, including Aldi, which has more than doubled its retail footprint.
- Private label offerings have also grown notably (17.1% share of total CPG spend), giving consumers additional low-cost options when looking for deals.
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