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CUSTOMER PURCHASE BEHAVIOR SHIFTS

Digital technology, growing prices due to inflation and generational preferences are driving changes in customer shopping habits.

INFLATION CONCERNS MOUNT

Some 89% of customers are concerned about infl ation and eight in 10 customers have adjusted their shopping budget and purchasing behavior due to infl ation.

Source: Smarty, a cash-back shopping portal, surveyed 1,000 U.S. customers between March 22-24, 2022

What concerns customers most about infl ation?

68% said the potential for everyday items to skyrocket in price. 43% pointed to limited supply making it di cult to shop for quality items. 42% said they don’t make enough money to a ord the high prices.

What are consumers spending less on due to infl ation?

Restaurant takeout (52%)

Clothing (45%)

Gas (43%)

BRAND LOYALTY DIPS MILLENNIALS AND BOOMERS COPE DIFFERENTLY

GEN Z HABITS DIFFER

Some 59% of consumers are buying less expensive brands to cut costs, causing brand loyalty to suffer. • 48% of consumers are more likely to shop for a brand that has consistently lower prices. • Customer willingness to switch to a new brand that is more a ordable rose 12% quarter-over-quarter. • Millennials are less likely to sacrifi ce their shopping habits compared to baby boomers. • Baby boomers are nearly twice as likely as millennials to go without some products. • Only 35% of millenials would buy a less expensive brand. • Baby boomers are more likely to shop in-store to avoid paying for shipping.

Source: Jungle Scout’s “Q2 2022 Consumer Trends Report,” an anonymous survey conducted between May 6 -10, 2022, among 1,000 U.S. consumers in 48 U.S. states; all genders, and ages 18 to 75-plus, as well as varying employment types and income levels

DELIVERY TRENDS EVOLVE

33% of all orders were received digitally in March 2022. 55% of all digital orders were for takeout as opposed to delivery or curbside pickup in March 2022. 42% dip in dine-in sales in January 2022 compared to January 2020.

Compared to other generations Gen Z is more likely to:

• Dine out for an evening or late-night snack. • Use drive-through and delivery as modes of dining. • Place their takeout order through the restaurant’s mobile app. • Use in-restaurant digital tablets when dining in. • Make dining decisions spur-of-the-moment. • Be motivated by food indulgence and less by convenience when dining out. • Be infl uenced by budget when choosing a specifi c outlet. • Order beverages that are seen as treats, including iced co ee, regular sparkling soft drinks, milkshakes and slushies.