Modern Retail x Attest Research: More than half of shoppers are switching to cheaper brands due to inflation
This story is part of an editorial research partnership with Attest.
Inflation is on a lot of shoppers minds’ right now, especially as news about tariffs dominate the headlines every day.
A recent Modern Retail+ survey done in partnership with Attest, a leading New York-based consumer research platform, sheds light on how consumers are feeling about the economy and inflation.
We asked nearly 1,000 consumers how they feel about inflation and the economy as a whole right now. The vast majority of consumers think inflation is increasing, with 42% of them thinking inflation is increasing by a lot and 31% thinking inflation is increasing by a bit.
Shoppers have a myriad of ways to deal with rising prices. When respondents were asked if inflation had caused caused them to cut back spending on any categories in particular, “groceries and food” was the most common response, followed by clothing.
But perhaps most importantly, more than half of consumers (52%) said that they were switching to cheaper brands because of inflation. Delaying major purchases is another common tactic; 48% of respondents said they were doing that. Meanwhile, 28% said they were taking on more debt.
Other insights from the full survey included that nearly 38% of respondents said that their budget covers essentials, but there’s nothing left over. And more than 45% of respondents said the experience of shopping in-store made them feel stressed right now.
Put together, all of this data paints a picture of a consumer that is cautious and worried. Many retail executives have been acknowledging this on earnings calls over the past few weeks.
“We’re still seeing a cautious consumer, leading to continued near-term pressure on DIY discretionary spending, particularly in bigger ticket projects,” Lowe’s CEO Marvin Ellison said during the company’s fourth-quarter earnings call on February 26.
“There are still uncertainties related to consumer behavior and global economic and geopolitical conditions,” Walmart CFO John David Rainey said on February 20, when the big-box retailer released a full-year forecast that was more cautious than Wall Street analysts had hoped for — which could be a harbinger of things to come.