Dive Brief:
- More than a quarter (27%) of consumers said they would switch brands to get a better deal on their purchases, according to a Numerator report updated July 21.
- June promotional volume declined 19% year over year, but sales price showed growth and accounted for 23% of all promotion offers during the month, per the report.
- Over a third (34%) of consumers said they browse store ads. Nearly a third (32%) said they frequently use coupons to save money.
Dive Insight:
Consumers remain on the hunt for bargains while brands are continuing to emphasize sales with promotions amid ongoing inflation constraints, according to Numerator.
”Brands and retailers will need to competitively promote for the remainder of the year as sentiment around finding promotions grows,” the report stated.
And now that back-to-school has arrived, research suggests that deals are a shopping focus. Deloitte released a report in July predicting that families with children in kindergarten through 12th grade expect to spend $597 per child on school supplies, down 10% from last year. With discounts in mind, 80% of back-to-school shoppers favor mass merchants, 60% look online and 33% favor off-price retailers and dollar stores, Deloitte found.
“For this back-to-school season, inflation weary parents are reassessing how they’ll approach shopping,” Deloitte Managing Director Stephen Rogers said regarding the report. “The entire shopping journey will be about minimizing costs. Parents plan to shop earlier for deals, pay with cash, and prioritize in-store purchases.”
Despite looking for discounts, consumers are continuing to spend overall. In June, total U.S. commerce sales rose nearly 5% year over year, according to the U.S. Department of Commerce’s Census Bureau. Non-store sales saw a 10% bump from last year, per the Census figures.
Retailers this summer have responded to consumers seeking discounts. Amazon aimed to attract budget-conscious consumers ahead of Labor Day with its Prime Day event. Amazon also offered up to 40% off on brands outside of Amazon who use Buy with Prime and showcased deals via personalized feeds. Other retailers including Target, Best Buy and Walmart hosted their own competing sales events around the same time period.
