Price concerns alter US consumer shopping patterns: Report

Walmart was the only large-scale retail brand to have its footfall peak in the third quarter (Q3) of 2021, with traffic surging by 20 per cent compared to Q1 2021, according to the Q1 Consumer Trends Report by Gravy Analytics.

Brands such as Kohl’s, Target, and Macy’s experienced footfall below Q1 2021 levels during Q2 and Q3 2021. However, these brands witnessed a significant upswing in footfall during the final quarter of 2021, likely spurred by consumer spending during the winter holiday season.

Post the holiday season, Kohl’s, Macy’s, and Target saw a noticeable decline in footfall, most likely in line with seasonal shopping patterns. Walmart, however, did not witness a severe drop, potentially due to its competitive pricing which might have appealed to budget-conscious shoppers amid the inflation.

The report further posited that during periods of high inflation, low-income households tend to allocate a larger portion of their budget to necessities like fuel, which could explain why more affordable brands may be outperforming their competitors. Factors such as geographical location and the age of consumers can also influence purchasing decisions.

In light of the inflation and ongoing supply chain challenges, the report stressed that brands need access to enterprise-level data, such as location analytics, to better comprehend changes in consumer behaviour and adapt their business strategies accordingly. The insights from the report highlight the significant role of inflation in shaping consumer shopping patterns, underscoring the need for brands to be responsive to these market shifts.

Fibre2Fashion News Desk (NB)