Consumer Reactions to 2023 Economic Headwinds

In 2022, consumers faced significant economic pressures, like record inflation followed by price hikes. As a result, many shoppers have adjusted their spending behaviors and cut costs. These habits will linger into the new year, with consumers more willing to wait for a bargain on discretionary spending or delaying a large purchase altogether. 

“On necessities like groceries and clothing, consumers will look for more affordable options,” Marly Sohr, VDX.tv’s lead of industry solutions for retail, told Retail Leader Pro. “Retailers will be mutually incentivized to offer deep discounts to unload excess inventory they’ve been holding onto since the pandemic boom in demand.”

The uncertain economy moving into this year also will continue to put an increased focus on ways for shoppers to stretch their dollars — this includes savings and discounts, conscious buying and more comparative shopping.

“In order for retailers to engage and retain shoppers under these conditions, they should consider offering customers an additional incentive to facilitate the checkout process,” Hector Pantazopolous, SourceKnowledge’s co-founder and chief revenue officer, told Retail Leader Pro. “Purchase incentives, such as discount codes, exclusive member benefits or free shipping, can help increase purchasing power.”