Will 2022 be the year of retail? – RetailWire


January 25, 2022

The cost of everyday goods has risen more over the past year than the average American’s income, leaving consumers looking for ways to save money on their purchases.

A the wall street journal The article outlines ways shoppers are looking to stretch their budget, including buying items in bulk, using coupons or buying on sale, and swapping them out to private labels or lower-cost value brands. . Cherry picking expands as buyers search for deals.

The government stimulus checks that supported Americans at the start of the pandemic have ended and Congress has made no progress in pursuing the 2021 Child Tax Credit payments that were particularly important for the working class and middle-income families.

In the United States, workers find that the increases they have received over the past year have not been high enough to meet the rising cost of food, fuel and housing, reports The Washington Post. Wages for hourly workers fell 2.4% last year after adjusting for inflation, according to the Labor Department.

The ability to afford goods is a priority for a growing number of Americans. A Monmouth University poll released last month, ABC News reports, found that the percentage of Americans concerned about paying everyday bills (15%) and inflation (14%) was more than triple (eight%) the rate of major personal finance issues when the same issue arose. was laid in August 2020.

The inflation rate has been fueled by a combination of pandemic-related factors, such as extremely high consumer demand, product shortages linked to supply chain disruptions and businesses seeing opportunities to improve. their bottom line.

Major consumer brand companies have publicly announced plans to raise prices for popular products in 2022 and retail executives have said in a number of forums they expect continued pressure on consumers. costs.

There are, Business Intern reports, some signs that the economy may be cooling. December retail sales fell 1.9% in December after a record November.

Worries about the big economy and their own personal finances could also affect Americans’ willingness to spend in the months ahead. The University of Michigan Preliminary Consumer Confidence Index January’s report fell significantly, with three-quarters of respondents 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 increase their market share in times of inflation?

Braintrust

“People traded during shortages when that’s all they could get, so now that they’re comfortable doing it, it will continue if the product is equal AND cheaper.”

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