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The latest First Insight report reveals groceries, gas and restaurants are top categories that hit consumers hardest across borders
PITTSBURGH–(BUSINESS WIRE)– With the holiday season fast approaching, rising prices are having a negative impact on consumer confidence. According to the new First Insight report, an average of 82% of consumers in France, Germany, Italy, Spain, the UK and the US are less confident about their spending The state of consumer spending: Impact of Inflation on International Consumers. The survey found that the top three expenses hitting consumers hardest are groceries, gas and eating out.
On average, 68% of consumers are most affected by rising food prices, most notably in Germany at 78%, followed by the UK and Spain. Consumers overall are cutting back on branded products the most in grocery stores, followed in descending order by alcohol and spirits, meat and seafood, snack foods, organic foods and produce.
At least three-quarters of consumers in all six countries are less proactive, ranging from 75% in France to 86% in Germany. German consumers report the biggest change in their shopping habits due to inflation, saying they are shopping more for bargains and staying on budget. On average, 41% of consumers surveyed feel they get the best value when shopping online and the lowest when shopping at independent retailers.
“Inflation is having a negative impact on consumer confidence not only in the US, but across the UK and Western Europe as we enter the critical holiday shopping season,” said Greg Petro, CEO of First Insight. “As belts tighten, retailers and brands worldwide need to work harder to identify greater opportunities to offer targeted promotions and incentives to engage with consumers, while also refining pricing and advertising strategies to meet the needs of consumers secure margins.”
When it comes to spending, restaurants, nightlife and travel are some of the top categories where consumers are saving across the board, followed by clothing/footwear/accessories and entertainment. Individual differences between countries show that 56% of consumers in Spain reduce spending on nightlife entertainment, while 53% of consumers in Italy cut travel expenses by taking fewer holidays.
The threat of recession affects at least 92% of consumers in all countries, with the UK being the most concerned at 96%. Many consumers – 66% on average – believe a recession is already underway. Almost a third of consumers overall admit they are saving less due to high prices and 17% say they are turning to savings to deal with the cost of living crisis.
Download the full report here.
About First Insight
First Insight, the global leader in Next-Gen Experience Management (XM), is transforming the way organizations make better decisions that lead to a sustainable future. Clients include some of the world’s leading vertically integrated brands, department stores, consumer goods companies, retailers and wholesalers. For more information, see www.firstinsight.com.
First Insight’s results are based on a survey conducted through its proprietary platform. The report is based on samples of 1,000 adults each in France, Germany, Italy, Spain, the UK and the US submitted via email in September 2022. The samples were proportionally balanced by generation, sex, and household income range. Further details on the results are available upon request.
Communications Group Bern
Source: First Insight