Shoppers' Spending Expectations: 2022 vs. 2023
In the previous year, we surveyed shoppers to gauge their expectations regarding their spending habits in 2022. The results showed that 8% of respondents anticipated spending less, while 72% expected to spend roughly the same amount. However, when we examined the transactional data, we observed that a higher percentage actually spent less, largely due to prevailing economic conditions.
As we look ahead to 2023, we wonder whether shoppers anticipate greater, reduced, or consistent spending.
Somewhat surprisingly, 22% of shoppers express their intention to increase their spending in 2023. These decisions are often influenced by personal factors such as life changes, like welcoming a new addition to the family, securing a higher-paying job with more disposable income, planning vacations, embarking on home renovations, or purchasing a new house. When asked about their spending priorities for 2023, three categories emerge as the front-runners: 32% say travel and leisure, 28% say home improvements, and 27% say clothing and footwear.
Conversely, 29% of shoppers expect to curtail their spending throughout the remainder of 2023. Their reasons are more systemic than personal, with many citing concerns about the escalating cost of living, diminished purchasing power due to stagnant wages, and the impact of rising mortgage rates.
This group is clearly shifting toward reduced consumption, more prudent shopping choices, and saving for potential financial challenges in the future.
Interestingly, home improvements also remain a priority for 31% of this group, whether driven by choice or necessity following recent weather-related events. Nevertheless, they continue to prioritize spending on essentials, with 30% prioritizing groceries and 26% prioritizing health products.
Much like in 2022, it appears that the economic landscape will once again exert a significant influence on shoppers' spending patterns in the upcoming year.
