You’re probably going to see fewer “impulse buys” over the next few months…
About 70% of US consumers plan to cut back on nonessential spending. 15% plan to stop completely as the recession continues, a new PwC study shows.
Money balks: Half of the consumers surveyed said they’re very concerned about their personal financial situations, and 11% said they’re switching to in-store shopping to avoid delivery fees.
Glass half-full: On the other hand, a separate report claims there’s been a rise in some retail sales, including sporting goods (7%) and furniture and home (4%).
Electronics and appliances… not so much. Both saw a 6% drop.
How concerned should you be? Maybe only a little. Even economists admit that they can’t actually figure out what’s going on.
Manufacturing data and consumer spending seem to suggest that a recession is either in progress or imminent. But it might be a mild recession without a huge spike in unemployment.
There’s also a case to be made for a “soft landing” as consumers keep spending and the job market keeps growing. Fingers crossed.
Why we care: Don’t be surprised if you see a drop in sales over the next few months, especially if you’re selling a nonessential product or service.
In the meantime, you might consider pumping up your advertising and targeting efforts to find people that are likely to buy.
And if you really want to dial in your ad targeting, there’s a simple way to…
