What’s really driving retail purchasing today?

It’s no surprise that during the height of the pandemic consumers were very concerned about their own health. Today, they are more anxious about their own finances and the economy, which is also not surprising given the turbulent times we are living in.

Retailers can respond by reinforcing the relationships they have with customers by recognizing and responding to their economic concerns. They can do this by providing opportunities for people to stretch their money further or reassurances around stable pricing and value for money.

As consumers feel squeezed by the economy, they are making new and sometimes difficult spending trade-offs. Consumers with lower incomes are the most likely to do this, reducing spend on luxury items, socializing or eating out, and big-ticket purchases—and retailers will certainly feel the impact of these consumer trade-offs.

However, there is a notable spending trade-off that consumers don’t plan to make—regardless of their income—and that’s on health and fitness. 

In addition to changing what they buy, consumers are also interested in and willing to change how they buy.

It is certainly true that some consumers who shopped online in 2020 and 2021 are likely to return to brick-and-mortar stores, and that the store of tomorrow will look very different.

However, consumers’ lives are becoming more digital all the time. And what may be surprising is that people of all income levels and generations are interested in shopping for real-life products in virtual worlds.