Minneapolis – Six months of inflationary pressures have consumers rethinking how they are budgeting their money – including for Holiday 2022.
A recent survey from Digital River, a global commerce enabler, three areas in particular are top of mind for reduced spending:
- 67% of U.S. adults surveyed have reduced their spending on “non-essential” items in the last six months (including vacations and holiday shopping)
- 40% are spending less on summer vacations, including 49% who are reducing travel expenses
- Over a third (38%) expect to spend less at Christmas this year, while another third (32%) are planning to spend the same as usual
The Digital River Survey on Cost of Living and Online Spending Habits also explored how consumers view their personal finances.
- Almost half of US adults (45%) also say their financial situation has got worse in the past 12 months.
- Less than a quarter (24%) think their financial situation has gotten better.
- Three in ten (30%) say it has stayed the same.
U.S. adults are slightly more optimistic for the future however, with almost two in five (38%) expecting their financial situation to get better in the next 12 months and just over a quarter (27%) who think it will get worse.
Even so, online shopping purchases remain high. The survey found that 42% of US adults make an online transaction at least once a week.
- 39% have shopped online more frequently in the past six months
- 54% expect to increase their online shopping tendencies due to convenience
- Despite growth in e-commerce, 45% note not being able to see products in-person as a major barrier of online shopping, followed up delivery price (35%)
Although consumers are tightening their belts, “our research has shown the pace of online spending isn’t expected to slow down despite the squeeze on finances,” said Ted Rogers, chief revenue officer at Digital River.
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