According to the PwC Insights Pulse Survey 2023 global consumer survey, more than two-thirds (69%) of consumers worldwide have cut back on non-essential spending and the majority (96%) have started saving as prices around the world hit record highs. .

Over the next six months, consumers plan to reduce their spending in all categories analyzed, with the largest reductions predicted for luxury/premium or designer goods (53%), travel (43%) and clothing and footwear (41%). On the other hand, food products will become cheaper the least, by 24%.

“Last year, most countries experienced record inflation, interest rates on loans rose and consumers had to cut back on non-essential spending and turn to cheaper alternatives to save. The survey shows that more and more people are looking for promotions and offers and have shifted to cheaper “own brand” retailers. For retailers to succeed in this challenging macroeconomic environment and retain customers, they need to leverage and diversify distribution channels, offer competitive pricing, and invest in improving supply chain resilience. The upward trend in prices will continue this year, albeit at a slower pace,” said Ruxandra Tarlescu, partner and head of PwC’s retail industry in Romania.

The cost of living affects consumer confidence

Half of surveyed consumers say they are worried about their personal financial situation, and 96% are saving.

For example, nearly half (49%) of consumers say they buy certain products during sales/promotions, 46% go to retailers that offer better value for money, 40% use comparison sites to find cheaper alternatives, 34% buy in bulk to save, and 32% buy retailers’ own brands to save.

Demographically, Gen Xers are “most concerned” (47%) and have taken action on non-essential spending, Baby Boomers are “somewhat” concerned (33%) and are taking action, while Millennials are “concerned” but unchanged. their behavior.

Rising prices are the biggest problem

More than half of consumers (56%) said overcharging is the most common problem when shopping in-store, but they are equally concerned about out-of-stock items (42%) and the inconvenience of standing in long lines (39%).

The top concerns for online shopping are rising prices (48%), product availability (24%) and longer-than-expected delivery times (24%).

Brick-and-mortar shopping remains largely stationary compared to last year as the most common mode of consumption (43%), while smartphone (34%), PC (23%) and tablet (15%) usage all declined slightly.

In the Global Consumer Insights Survey, 9,180 consumers from 25 countries were interviewed.

Article supported by PwC Romania