- Consumers are planning to spend less on indulgences and prioritize basic needs compared to Spring 2023
- Over half of consumers are shopping second- hand which is driven by low prices in second- hand markets
- This holiday season consumers will spend more on gifts versus Fall 2022 and will prioritize gifts for others over gifts for themselves
Global professional services firm Alvarez & Marsals Consumer and Retail Group (A&M CRG) today released its newest consumer report, Consumer Sentiment Survey Fall 2023, which looks at the impacts of inflation and resultant changes in consumer spending over the last year, as well as spending expectations for the coming six-month period.
This is the fifth chapter of its bi-annual Consumer Sentiment Report, based on a survey of 1,500+ consumers matching the U.S. adult population according to gender, age, ethnicity, region and income. The report covers various changing behaviors in response to personal finances and the state of the economy, including consumers shopping priorities by category, concerns over rising prices, holiday plans, and other factors that will affect purchase decisions this fall/winter, and more.
One of the objectives of our semi-annual survey is to understand how consistent economic concerns impact consumer spending behavior, channel preferences and overall confidence in their financial security over time, stated Chad Lusk, Managing Director at Alvarez & Marsals Consumer and Retail Group. This cycles survey showed us that while consumer outlook was more favorable in Spring 2023, consumers are more pessimistic going into the winter months and plan to be more cautious with their spending. Despite this, we are seeing a year-over-year benefit in that consumers are still planning to participate more in holiday shopping when compared to Fall 2022.
The study found that:
- Consumer expectations are weaker this fall, they expect to save less money and have less money compared to Spring 2023
- While we are seeing consumers plan to spend more money on basic needs, they are planning to spend less on experiences and indulgences.
- 67% of consumers believe that prices will continue to rise, and 65% believe the U.S. will be in a recession within the next year
- Consumers are more highly motivated to join loyalty programs through special promotions and discounts and redeemable rewards
Retailers should be aware of this cautious consumer mindset and manage inventory appropriately to ensure assortments are in-line with consumer spending plans, said Lusk. Smart retailers should remain flexible and be prepared to offer discounts and promotions in non-essential categories, as the season unfolds.
To download a pdf of Consumer Sentiment Survey Fall 2023, please visit:
About Alvarez & Marsal Consumer Retail Group
The Alvarez and Marsal Consumer and Retail Group (CRG) is a management consulting firm that tackles the most complex challenges and advances its clients, people, and communities toward their maximum potential. CRG combines the best of A&Ms broader firm's bias toward action and practicality with deep consumer and retail industry experience. CRG partners with businesses across a wide range of categories including Food & Beverage, Beauty & Personal Care, Grocery, Mass Merchandise, and Apparel & Footwear to drive significant performance improvement.
Alvarez & Marsal Consumer and Retail Group