Survey: Consumers still conscious of spending, looking to save
Despite it easing, more than six-in-10 consumers say that inflation is still a concern, and a higher percentage say they are willing to trade down on quality for price.
That’s according to a Bread Financial’s latest report “Mid-year Update: The State of the American Shopper.” In terms of spending, 36% of consumers say they are spending the “same” compared to last year, increasing from 33% in October 2023. While many top cost-cutting behaviors peaked in October, Bread Financial found that 33% of consumers say they are reducing the number of store trips, and 31% are comparison shopping more frequently.
Sixty-three percent of those surveyed said they are worried about inflation, although consumers are less worried about their personal financial situation (35%, down from 41% in October) and employment situation (20%, down from 23% in October).
[READ MORE: Retail sales better than expected in June]
The majority (54%) of consumers say they are taking steps to cut back their spending. More than three-quarters (76%) of those surveyed say they are willing to trade down on quality for price to save money, with 40% reporting that they are cutting back on non-essential purchases to save money.
Bread Financial also noted that many consumers (42%) are reporting shopping at an even mix of online and in-store channels to find the best deals possible. Consumers are also continuing to use multiple financing tools for everyday purchases. For everyday purchases under $500, 48% of consumers would use bank branded credit cards, 31% would use a retail store or co-branded card, and 21% would use buy now, pay later.
“Inflation will continue to be a major factor for consumers as we head into back-to-school and the holiday shopping seasons,” said Bread Financial in the report. “Brands need to offer compelling products at the right price, engage across channels with effortless experiences and provide a variety of payment and financing options to meet customer needs and expectations to win the sale.”
