Numerator Inc., a market research company has issued “New Year's Resolutions 2023 - Consumer Sentiment Findings”. Not unexpectedly, consumers in 2023 will be concentrating on financial well-being especially among the millennial cohort. In all, 53 percent of those surveyed plan to focus on finances. Their goals included:-
- Reduce spending on non-essential items
- Payoff loans, especially at a time of increasing interest rates
The implications are obvious to food retailers as market surveys have shown a preference for house brands, greater patronage of club warehouses and deep discount grocers. Consumers will be searching for value and will make greater use of social media, electronic advertisements and e-coupons. This will be especially evident in high-density areas with clusters of supermarkets and groceries in close proximity. Both brand and store loyalty will be eroded in the search for value.
Luxury items will be disfavored over essentials in 2023, and many purchase decisions will be based on price per unit comparisons. Intangible attributes such as welfare, sustainability and image will become less important than in past years with negligible inflation. Only the affluent will be willing to pay a premium for specialty products through a mild recession.
In-store shopping is returning after COVID restrictions to allow customers to compare offerings in all departments and especially the center of stores. If electronic orders are placed, customers will favor in-store pick-up over home delivery.