Consumer Behavior

Supply chain, inflation still a concern for a consumers

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January 17, 2022

The state of the U.S. economy, specifically inflation and supply chain issues, are still top of mind for consumers, according a Shopkick survey.

The concerns will continue to influence consumer behavior and may prompt Americans to spend less in 2022 as nearly half, 45%, of those polled don't anticipate spending habits will return to normal this year, according to a press release on the findings.

Additional findings include:

• When asked what spending habits they foresee themselves making in 2022, the majority of consumers (69%) said they will be spending less overall. Most consumers (58%) plan on approaching their finances by proceeding with caution and 22% are significantly tightening their budgets. Overall, 23% of consumers will be decreasing their non-essential spending entirely.
• Despite the popularity of online shopping in recent years, consumers still expect to do the majority of their shopping in physical stores. Most plan to purchase both non-essential (71%) and essential items (87%) in brick-and-mortar stores and the majority (59%) of consumers view in-store shopping as an event or something to look forward to as life returns to "normal."
• Of those 22% tightening their budgets, almost half (49%) are doing so because they feel less financially stable and are unsure what the future holds (49%). Nearly all consumers are concerned about the risk of continued inflation (96%) and supply chain and product shortage issues (95%).
• Though Covid-19 vaccines are widely available to the public, health and safety precautions continue to be important to consumers. More than half (55%) of shoppers say retailers' health and safety guidelines will play a role in where they choose to shop in 2022.
• Many consumers (36%) anticipate shopping more frequently and spending more money at retailers and with brands that align with their core values (politically, socially, etc.). Generationally, Gen Z (53%) is most likely to shop more frequently at retailers or with brands that align with their core values (politically, socially, etc.), followed by Millennials (42%).

"After a tumultuous turn of the decade, 2021 was a critical juncture for retailers and brands to strategize for the new year and beyond," David Fisch, general manager of Shopkick, said in the release. "The findings from this survey continue to tell us that physical retailers reign supreme and health regulations that help people feel more secure remain essential. They also further reveal the need for seamless, omnichannel shopping experiences that help consumers save as much as they can, especially when the economy makes it difficult."