ICSC: Shoppers Keep Shopping but Make Sharper Tradeoffs

Even as consumers are less concerned about inflation, they’re increasingly selective, value-conscious and attentive to potential financial risks, ICSC said Thursday. Among other findings of ICSC’s new Consumer Economy Report, brand loyalty is becoming less sticky as shoppers are more willing to switch brands, retailers and products to find the best deal.

Further, the report found that increased spending doesn’t necessarily equate to higher demand. Seventy-seven percent of consumers surveyed reported higher monthly spending, but elevated prices and new expenses were the primary spend drivers, while only 14% cited higher income.

“Consumers continue to show remarkable resilience, continuing to spend and remaining broadly optimistic about their financial futures,” said Tom McGee, president and CEO of ICSC. “Yet ICSC’s latest data shows that many households are making increasingly deliberate tradeoffs to manage their budgets. Consumers are placing greater emphasis on value, becoming more selective about where they spend and keeping a closer eye on their financial flexibility. At the same time, growing concern about job security suggests that income stability may be emerging as a bigger consideration than inflation alone. The result is a consumer who remains engaged and willing to spend but is making purchasing decisions more carefully than ever.”

ICSC conducted consumer surveys online in early May and early July.