Consumer Behavior

Consumers prioritizing price these days

Photo: Adobe Stock

April 23, 2025

More than half of consumers, 55%, plan to prioritize products with the lowest price when shopping in the coming months and 33% of retailers believe shoppers will now look for ways to save and stack incentives when purchasing from preferred brands.

Those are top findings from a Rakuten study conducted with The Harris Poll that revealed a disconnect between shopper brand loyalty and retailer confidence, according to a press release.

Retailers understand shoppers will prioritize price, but they believe that brand loyalty will remain intact. An additional 32% believe that shoppers will shift their purchasing to discount retailers that feature their favorite brands.

"Consumers are looking for value, but the cost of doing business is increasing for retailers," Julie Van Ullen, chief revenue officer at Rakuten Rewards, said in the release. "Retailers are in a very difficult position. They cannot assume that shopper loyalty will remain intact if they choose to pass the added costs onto the consumer by raising prices, but they also cannot afford to offer discounts. Instead, retailers will need to leverage other incentives like Cash Back that allow retailers to attract value-seeking shoppers without adjusting prices at all."

Additional findings include:

• 19% of consumers said they cannot afford to pay their household bills, and 17% cannot afford necessities like food and gas.
• Only 36% of consumers said they can afford all their daily expenses in addition to non-essential items.
• Over a quarter (28%) cannot afford personal purchases like new clothing, makeup, electronics, and more.
• Roughly two-fifths (41%) plan to shop less than in previous years.

Inflation remains top of mind, with most (39%) consumers citing inflation as having the most impact on 2025 shopping plans. Shoppers remain pessimistic about inflation, as 77% believe prices will continue to increase throughout the year.