The 13th edition of the EY Future Consumer Index (FCI), a global study surveying more than 22,000 consumers across 28 countries, including 1,500 in the US, signals that US consumers are focused on finding the best deals rather than prioritizing experiences, brand loyalty or convenience. Inflation and high interest rates continue to impact US consumers’ wallets as they head into the holiday season, with most still worried about the high price of groceries, creating opportunities for new brands or private labels in their homes.
The Affordability First segmentation of US consumers continues to take the top spot (36%, increasing 10% points since October 2022), while Experience First has seen a momentous decline compared with the last festive season (12% of consumers surveyed, decreasing 11% points since October 2022), falling behind consumers in the Health First (26%), Planet First (14%) and Society First (12%) segmentations.
“Cost-strained consumers want to know they are getting a deal, or they simply won’t prioritize a purchase,” said Kathy Gramling, EY Americas Consumer Industry Markets Leader. “Traditionally, brands and retailers have turned to big moments like Black Friday and Cyber Monday to drive holiday demand, but we’ve seen that many consumers are trying to manage their budgets and have been preparing and shopping sales all year round.”
Sales are no longer a ‘moment in time.’ With inflation in the US still at record levels, it’s no surprise that 62% of consumers are extremely concerned about the rising cost of living. While 50% of consumers expect to spend about the same on the next big shopping sale vs. previous years, overall, 39% of consumers expect to spend less this holiday season.
Overarchingly, 81% of US consumers are planning to buy fewer items in general – across all categories – to save money. Many consumers are honing in just on the essentials, with 46% noting they’re only purchasing essentials at this time. Additionally, findings…
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