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NPD Group Reports on Decline in Consumer Demand

02/27/2022

According to the NPD Group, unit sales have declined by eight percent for six consecutive weeks with exception of the pre-Superbowl and Valentine's Day weeks. Marshal Cohen, Chief Retail Industry Advisor for NPD stated, "The combination of higher prices, greater demand, lower supply, and fewer promotions over the past year is starting to take their toll on consumer purchasing". He added, "The willingness to spend is still there but the need for new products has waned". Consumer demand has now resumed to levels consistent with the period before the emergence of COVID.

 

 

Consumers are aware of inflation with 89 percent of those surveyed noting increases since December 2021 and with half indicating that they would in future reduce expenditure and stay within budgets.