An increase in food costs causes retail consumers to spend less. Retail customer experience

The cost of living, from food costs to credit card bills, plays a role in what consumers do when it comes to spending, according to a report by The NPD Group.

The industry is seeing a pre-holiday drop in general merchandise sales, while food spending continues to rise, according to a press release on the results.

U.S. general merchandise retail sales fell in the three weeks ended Nov. 5, and October sales fell 5% year-over-year, followed by a 14% decline in the first week of November. research.

“Rising weekly grocery costs and monthly credit card bills have begun to reduce discretionary shopping,” Marshall Cohen, NPD’s chief retail adviser, said in a release.

“Consumers can only absorb climbing costs for so long before they start to overestimate their ability to spend.”

But at the same time, spending on food and beverages and other consumer goods continues to exceed results in any of the last three years. In particular, rising food and beverage prices and a shift towards consumer spending on food in general are now affecting spending in other areas.

These challenges are compounded by endless discounts on existing inventory, prolonged warmer-than-normal temperatures that delay the typical seasonal transition to cold-weather products, and distractions from midterm elections.

“Rising interest rates and other aspects of the economy are affecting consumer confidence, and the lack of new product is reducing their need and willingness to spend,” Cohen said in a release.

“During the holidays and into the new year, consumers will look for exclusive product offers, unique compelling benefits and promotions that break through the noise and create a sense of urgency to make a purchase.”

https://www.retailcustomerexperience.com/news/increasing-food-costs-driving-retail-consumers-to-spend-less/ An increase in food costs causes retail consumers to spend less. Retail customer experience

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