INSIGHTS TO ACTIVATE
WINNING THE WALLET WAR
How brands can win by becoming necessities in a tight economy
INSIGHTS TO ACTIVATE
WINNING THE WALLET WAR
How brands can win by becoming necessities in a tight economy
Key Takeaways
1
Americans are more consistently pessimistic about the economy than any time since COVID
2
61% of Americans say “I am just spending on daily necessities right now, nothing more”
3
Despite the challenges, 67% say they have favorite brands that they’re unwilling to switch
Americans are struggling as higher gas prices hurt their wallets, and threaten to drive up the price of everything else in the process.
Three in five Americans — including half of higher-income Americans — say they’re only spending on daily necessities right now, posing a major threat for any sector that could be seen as an indulgence, or even everyday staples that could be under pressure from private label.
To hold their market share and gain more, the brands that get ahead will be the ones who recognize they’re in a zero-sum battle for consumers’ dollars — competing not just against private-label competitors in the aisle, but also with coffee shops, entertainment options and beyond.
What comes next? Consumer spending is the primary engine of the American economy and shopping has always been about more than transactions. It shapes how people spend their time, express themselves and connect with others. As Americans face growing financial pressure and AI begins to shape the purchase decisions, the rules of commerce are being rewritten. The upcoming What the Future: Shopping issue explores the forces changing how America shops, who and what consumers trust and what it means for manufacturers, brands, retailers and consumers.