Consumer Behavior

Inflation impacts retail spend, claims report

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April 5, 2022

When it comes to retail spend, 72% of consumers are spending less due to inflation and are cutting out "fun" and "impulse" buys, according to a consumer trends report from Jungle Scout.

The study, which polled 1,000 U.S. consumers, also revealed 34% are spending less online, which is the highest that statistic has been in at least a year, according to a press release on the findings.

Additional findings include:

• 47% of consumers buy from their favorite brands due to affordability — the leading driver of brand loyalty over quality, familiarity and sustainability.
• 53% make a purchase when presented with a deal, coupon or discount code, and 47% only purchase products that are on sale or discounted.
• 60% of consumers are spending more time at home, and 50% are more willing to spend money on their homes than before the pandemic.
• 62% have a greater interest in self care now than pre-pandemic.

"Rising inflation is making consumers keep a tight hold on their wallets and seek out deals and discounts more than ever. As consumers lean into homebody living, categories such as self care and home will thrive. This presents an opportunity for e-commerce brands to build consumer loyalty with the right products, perks and promotions to meet shoppers' needs," Michael Scheschuk, CMO at Jungle Scout, said in the release.