A survey by management consultants Consumer and Retail Group indicates consumers contacted in February and March were slightly more optimistic in their outlook than those surveyed in fall 2021, but overall sentiment regarding prospects remains cautious.
CRG noted that the vast majority of consumers are sticking with changes in shopping behavior made during the pandemic, including approaching shopping as a largely functional rather than leisure pursuit.
In addition, consumers are holding back on some spending because of concerns over inflationary pressures, the survey indicated.
Consumers are spending on basic needs and experiences, with spending on indulgences and gifts continuing to lose priority, CRG maintained. However, consumers are beginning to eat outside the home in greater numbers. Across other categories, as defined by CRG, consumers stated that they have become willing to spend more on fresh food, personal care, wellness and fitness, and airlines and travel, and the same amount on home decor. When the category excludes home improvement, home decor, now defined as home decor and furnishings, had a positive spending sentiment.
CRG reported that 51% of consumers expect things to get better for their families during the next six months versus 46% in the fall of 2021. Only 46% of consumers plan to save more in the next six months versus 71% in the fall, while 49% expect to have more money versus 43% in the autumn. The same proportion plan to spend the same amount or more money during the next six months, at 90%, while 38% expect things to get worse for the country during the period, up from 34% in the fall.
Of the barriers to spending, two categories gained: “the products/services I want have become too expensive,” moving from 39% to 49%, and “the product/services I want are not easily available,” moving from 28% to 30%.
