Summer’s here and the shoppers are wary. Consumer spending increased in May, but only by 0.2%, according to the Bureau of Economic Analysis. This explains why 76% of U.S. shoppers are searching online for reviews and better prices before buying in store, according to a new Adobe Commerce study of sentiment among over 1,000 U.S. consumers. Also, when they’re in a store 60% are using their phone to look for better prices elsewhere.
Another sign of the slowing economy: 24% say they won’t be able to take advantage of big summer holiday sales because they have less discretionary money to spend due to inflation and the higher cost of goods.
Read next: Adobe: Online prices were up only 2% in May
On the good news side: 76% of those planning to participate in summer sales say they’ll spend more or the same amount as last year. And the motivation varies — more than half (56%) of consumers say they save money by shopping on Prime Day and other sales events, while others want to get ahead of their seasonal holiday (32%) and back-to-school shopping (23%).
However, most of those who intend to buy don’t believe big retailers’ promises of deeper discounts because of overstocking. Almost 65% expect discounts to be smaller than last year.
- 61% said receiving personalized promotions or recommendations will make them more likely to make a purchase.
- 43% said they are more likely to purchase from a retailer that offers buy now, pay later.
- 72% want the online purchases delivered the same day or via two-day shipping.
- 50% are now more likely to make retail purchases on their phones, 26% prefer in-store shopping and 24% prefer shopping via their computer
- 57% search for and buy products online if they can’t find them in stores.
Why we care. Inflation and higher interest rates are, as expected, taking an increased toll on consumer spending. That makes marketing more important than ever, via activities like personalization and customer experience. That should also include offering payment options like buy now, pay later. People are used to putting everything on a credit card, but interest rates are making that less attractive to them.
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About The Author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.