The latest consumer research from 5WPR tapped more than 2,000 households to gauge sentiment on spending. The data revealed where shoppers intend to splurge this year and also looked at where their disposable income will likely go.
Regarding the latter, the top categories earmarked for spending of disposable income this year were clothing and fashion and dining out, each with 29 percent. Next was travel and experiences at 25 percent, and then electronics and technology at 23 percent. Health and wellness followed with 22 percent.
Regarding categories to splurge on, electronics and technology were tops at 51 percent, followed by health and wellness with 43 percent, and home goods and furniture at 42 percent.
“Consumers recognize the value in splurging on electronics and technology, it’s
a category where shoppers are often looking for good performance quality and product longevity, resulting in splurge pricing,” the report’s authors noted.
And given the current market and inflationary price trends, consumers are looking for deals and ways retailers can help them save money. Regarding specific actions retailers can take to help shoppers, “giving product discounts” came in first with 50 percent and was followed by “waiving shipping fees” at 38 percent. “Offering value-based alternatives” came in third with 30 percent.
“In today’s market, retailers answer to the consumers, and these savvy shoppers are expecting their favorite brands to take on a majority of the heavy lifting,” the report stated. “This could be through cutting costs or taking the commitment out of the purchasing decisions with free returns or try before you buy programs.”
The data also showed a preference for buy now, pay later, with 60 percent of respondents saying they use the feature while shopping. The research also showed that only 11 percent of those who shop with the feature “suggest it impacts how they spend by a lot, indicating that price is not a barrier to purchase, rather BNPL is a value-add experience in the purchasing process.”