Will 2022 be the year of trading down at retail? – RetailWire

January 25 2022

The cost of everyday products has risen more in the past year than the income of average Americans, leaving consumers looking for ways to save money on their purchases.

a The Wall Street Journal The article points out the ways shoppers seek to increase their dollars, including buying items in bulk, using coupons or buying to sell, and trading up to low-value or low-cost brands. Cherry picking is on the rise as shoppers look for bargains.

The government stimulus that supported Americans at the start of the pandemic has ended and Congress has not moved forward in continuing payments for the 2021 Child Tax Credit that were of particular interest to working-class and middle-income families.

Workers across the US are finding the increases they’ve received over the past year haven’t been high enough to keep up with the rising cost of food, fuel and housing, according to reports. Washington Post. Hourly wages for employees fell 2.4 percent last year when adjusted for inflation, according to the Labor Department.

The ability to pay for goods is at the heart of a growing number of Americans. Monmouth University published a survey last month, News letters Reports, it found, that the percentage of Americans concerned about paying daily bills (15 percent) and inflation (14 percent) was more than three times (eight percent) the rate of personal finance concerns when asked the same question in August 2020.

The rate of inflation was driven by a combination of factors linked to the pandemic, such as extremely high consumer demand, product shortages linked to supply chain disruptions, and companies seeing opportunities to boost their bottom line.

Major consumer brands have been public about their plans to raise prices for popular products in 2022 and retail executives have said in a number of forums they expect cost pressures to continue.

over there, interested in trade There are some signs that the economy may be slowing down. December retail sales fell 1.9 percent in December after a record November.

Concerns about the massive economy and their personal finances may also affect Americans’ willingness to spend in the coming months. University of Michigan Preliminary Consumer Confidence Index The January report dropped significantly, with three-quarters of those surveyed citing inflation as a bigger problem than unemployment.

Discussion Questions: Do you think inflation will have a significant impact on consumer purchases in the first half of 2022? What are the keys for retailers to maintain or build market share during the period of inflation?

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“Do you think inflation will have a significant impact on consumer buying in the first half of 2022?”

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