In the US, a survey revealed that 65% of respondents expressed a desire to increase their purchases of discounted products. Half of these respondents had an annual income of 200,000 USD or more. Despite global challenges such as high inflation, geopolitical unrest, and economic recessions in some countries, the US economy has remained resilient due to its strong consumption habits. However, recent data suggests that Americans are starting to reduce their spending, which is causing concern for economists.
Bank of America CEO Brian Moynihan noted that customer behavior indicates a sense of caution and a decrease in spending on both an individual and business level. A survey by KPMG also highlighted this trend, with most people optimistic about their personal finances but concerned about the US economy. With inflation impacting daily lives, consumers are looking to buy more discounted products from retailers known for offering low prices.
Retailers have responded by lowering prices on a wide range of items to meet consumer demand. This trend emerged during the pandemic and has continued into current times as consumers seek to stretch their income to cover essential expenses. Despite efforts by retailers to offer discounts and help consumers save money, retail sales have shown little growth due to the gradual loss of momentum in consumer spending. The shift in consumer behavior towards cost-saving shopping reflects the changing economic landscape and highlights the need for businesses to adapt to meet the evolving needs of their customers.
