45% of Consumers Downsized Their Lifestyles Due to Inflation

Retailers are feeling the heat of inflation, and many such as Walmart are offering hefty discounts because of the fact that this is the sort of thing that could potentially end up keeping sales up and the revenue coming in albeit lower than what it usually would be. With all of that having been said and now out of the way, it is important to note that retailers are not alone in feeling the adverse impacts of inflationary pressures on the prices of goods in the economy.

Consumers are also being affected by inflation, and a study conducted by NCSolutions 45% of American citizens are no longer able to afford their lifestyle and have therefore had to do some downsizing with all things having been considered and taken into account. 85% of the individuals who participated in this survey stated that inflation was a big concern for them, and 58% expect prices to get even higher as the year continues to progress.

46% of these consumers also stated that they are cutting down on non-essential purchases, and 60% are being more careful about what groceries they buy often by opting for cheaper off-brand alternatives. 43% of consumers now look for discounts so that they can buy products from their favorite brands which suggests that they are not able to afford the same products quite as easily.

60% of Americans have noticed shrinkflation, namely through the decreasing size of CPG product packaging, and that the product prices are still the same. 69% are also noticing a lower than usual number of products on store shelves, and 36% feel like they don’t have as many brands to choose from.

All of this data might lead some retailers to reduce their marketing, but in spite of the fact that this is the case NCS recommends that they should do the opposite. Informing consumers about products can help keep the wheel turning and spur continued consumption on their part. Much of inflation related decreased spending is related to stress, and seeing retailers actively promoting products can do a lot to ease the tension felt by American buyers.

Read next: This New Study Reveals How Brand Loyalty is On the Decline
by Zia Muhammad via Digital Information World