Inflation is Causing Most Consumers to Make Sacrifices This Holiday Season; Majority Are Reducing Gifting and Travel
Shopkick survey finds that the majority of consumers say grocery items are noticeably more expensive; over half anticipate a worsening economy over the next three months
People are gearing up for an extremely expensive holiday season, and they are planning to keep their budgets tight long after the festivities come to an end. In fact, 61 percent of consumers plan to keep their budget restricted even if inflation improves.
Shopkick, a leading shopping rewards app, surveyed over 10,000 American consumers between November 3 – November 7, 2022 to understand the impact the current economic climate is having on consumers’ holiday spending.
Key Findings Include:
- Inflation in the Aisle: Ninety-four percent of consumers say grocery items are noticeably more expensive, specifically eggs, meat, poultry, and seafood (85 percent). Dairy (81 percent), fresh produce (74 percent), bread, and beverages (68 percent respectively) follow closely behind.
- Economic Challenges Are Here to Stay: It has been a difficult year for Americans and there is no end in sight. The majority (55 percent) of consumers anticipate economic challenges worsening over the next three months.
- Tightened Budgets: Inflation has had a major impact on consumers’ finances and they are adjusting their spending because of it. In fact, 66 percent of consumers say their budget has been affected by the current economic climate.
- Prioritizing the Family: Due to sky-high prices, consumers are reconsidering what holiday purchases they make and for whom. This year, 74 percent of consumers are choosing to prioritize their children over their significant others (38 percent), parents (29 percent), extended family (24 percent), and friends (17 percent).
- Seasonal Sacrifices: To help make ends meet this season, 60 percent of consumers are making holiday-specific sacrifices. When asked to rank in order of probability, the majority plan to reduce the overall number of gifts they purchase this year, whereas others do not plan to travel to see friends and family, purchase holiday decorations, or host holiday gatherings.
- Finding Ways to Save: Most consumers (56 percent) are planning to take advantage of deal days such as Black Friday and Cyber Monday (a 13 percent increase from September). With tightened budgets, shoppers are also making other sacrifices, such as prioritizing experiences and activities over physical gifts (25 percent), avoiding big-ticket purchases (24 percent), and picking up additional shifts at work or getting a second job (22 percent).
- Stretching Dollars: Folks are also adjusting their grocery shopping habits with the majority of consumers (69 percent) utilizing shopping rewards apps and coupons. Others are making meals in advance and sticking to their grocery list (48 percent), taking fewer trips to the store to save on gas (48 percent), and substituting more expensive ingredients for less expensive alternatives (37 percent).
“Increasing prices and inflation do not appear to be going away, and consumers are tightening their belts to cope,” said Brittany Billings, EVP of marketing and strategic markets at Shopkick. “With consumers making trade-offs this year, it is more important than ever that brands and retailers stay on top of sales and discounts for deal days and beyond as price will be the driving force behind consumer’s decision-making this year.”
Shopkick conducted this survey of over 10,000 American consumers between November 3 – November 7, 2022.