Consumers demand answers from retailers about price hikes
What it means: Lifestyle changes created by inflationary pressures may actually benefit retailers in essential categories if they can adapt to consumers' changing needs. As consumers cut restaurant budgets and focus more on cooking at home, grocery providers and supermarket chains can market value and convenience to shoppers and provide alternatives to eating out. Consumers are more elastic in their spending on healthcare and grocery items, even in the face of inflation, paving the way for grocery and drug chains to remain a staple in consumers’ retail rolodex. The consumer pullback on car travel and gasoline expenses will no doubt impact the convenience channel, but delivery options coupled with consumers spending more time at home presents an option to circumvent those challenges.
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