Retail Trends 2023: What Americans Want From Retailers
Attest, a leading consumer research platform, today releases new data on the retail trends that will shape 2023.
Attest, a leading consumer research platform, today releases new data on the retail trends that will shape 2023.
The research is found within the third annual US Consumer Trends report which tracks sentiment and behaviors ahead of the new year.
Consumers are positive for 2023
The data reveals that a majority of American consumers (64%) are feeling positive ahead of 2023; by contrast, 16% feel negative as they head into the New Year. In fact, positive sentiment has only declined by two points from last year’s data.
Key findings for the retail industry include:
1. Shoppers pull back on spending plans for 2023:
- When quizzed on how they’re spending money going into the new year, most (59%) are pulling back, while 22% say they are spending “freely” instead. This new data highlights the changes from last year: there has been a 5.4 point increase in “fairly cautious” spending and a 4.7 point increase in “very cautious” spending.
2. Food insecurity is consumers' biggest concern, while 86% are impacted by price rises:
- Despite most being optimistic for 2023, food insecurity topped the list of Americans’ biggest worries for next year (at 24%). This was followed by increasing gas prices (17%), political upheaval (15%) and unaffordable energy bills (10%).
- In addition, 86% of shoppers say that the rising cost of food is having an impact on their diet. Of this 86%, over a third (34%) say such rapid price rises are having a “big” effect.
- The top issue cited is being able to afford fresh quality foods like meat, fruit and vegetables (41%). This is followed by 39% who struggle to afford to eat out, 34% who can’t buy preferred brands and 33% who are unable to stretch their budgets to purchase “luxury” items (i.e. steak, olive oil).
3. Older shoppers are returning to stores & Amazon dominates online:
- The pandemic increased adoption of online shopping among older consumers, but Gen X and Boomers are returning to Main Street. Nearly 41% of Gen X say they now “mostly or always” shop in-store, as do 44% of Boomers. Younger shoppers, on the other hand, still favor online: 36.3% of Gen Z and 39.5% of Millennials “mostly or always” shop online.
- Yet just when you thought Amazon's customer base couldn’t get any bigger, Attest’s data shows a net +11.1% of consumers plan to increase their shopping on the marketplace in 2023.
4. Rampant consumerism is going out of fashion, with thrift shopping on the rise:
- Frugality is cool for 2023; 43% of consumers say they are buying fewer things and consuming less - that’s a 9.6 point increase from last year.
- Thrift shopping will be a big pastime in 2023, with 38% of consumers saying they’ll be hunting for second-hand bargains to combat the rising cost of living. This is followed by 37% of consumers who will sell their unwanted goods, meaning the pre-loved market could be booming next year.
- The environmental effects of fast fashion have been in the spotlight lately and it seems to have had an impact. A net -10.4% of consumers say they will buy fewer fast fashion items in 2023.
Jeremy King, CEO and Founder of Attest, said of the research: “As we enter the new year, Attest’s research finds the American consumer in an important and high-value state of flux. Over half of shoppers are pulling back on their overall spending, affecting everything from where and how they shop to what they eat. ”
“Significant behavioral changes are taking root also. Frugality is on the spectrum between necessary and contemporary - finding new ways to save is becoming an American pastime. This research paints a picture of Americans trying to react to worsening economic conditions - with tectonic shifts in consumer expectations, perceptions, channels and value - meaning brands now more than ever need to be on top of the changing needs and wants of consumers to succeed.”