Consumer Demand Plummets for Second Month
Consumer prices up 12.5% in June as consumers spend more to purchase less
Fetch Rewards, America’s No. 1 consumer-rewards app, today released its June Fetch Price Index report, which shows
Consumer demand declined for the second consecutive month amid record-setting consumer prices, according to a new report. Inflation remains high, but June also brought the first signs that the cost of food and household goods may be flattening after 18 consecutive months of increasing prices.
The Fetch Price Index report showed a 3.5% drop in units per household in June compared to 2021, which comes after a 6.7% year-over-year decrease in May. The average grocery spend per household remains elevated, even though shoppers are bringing fewer goods into their homes – an indication that consumers are continuing to feel the impact of inflation.
Trips per household in June remained above the 2021 levels but are gradually slowing in year-over-year growth. And while total demand fell, shoppers are buying more private label brands – units per household in this category increased significantly for the first time in June, up 12.4% over last year. As consumers continue to grapple with rising prices, they are bringing less into their homes, and their regular purchase mix is in flux as they trade down to lower price points.
“Response to inflation is not a one-size-fits-all approach. Household demand differs within certain categories despite similar price increases, and brands must optimize pricing and portfolio strategy to win and identify categories that are at most risk of substitution or categories where consumers are willing to spend. After all, value is perceived differently across categories and even brands within a category,” said Wes Schroll, Fetch Rewards Founder and CEO. “With down trading becoming inevitable, brands will have to leverage accurate and precise data-led insights to understand evolving category sensitivities and value perception from consumers, to grow and maintain market share.”
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There’s simply not much in the stores, but cheap, Chinese junk. High end stores are unavailable to all but the elites and demwit sanctioned thugs.