Shoppers are changing their ways amid above-average inflation and uncertainty about interest rates. US consumers in 2022 and 2023 moved more of their spending away from traditional brick-and-mortar channels and toward online and value segments, senior partner Warren Teichner and colleagues note. Four out of five consumer packaged goods categories showed volume growth in their online channels.
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A bubble heat map shows the unit changes in 5 consumer goods categories across the top 5 purchasing channels from 2022–23. Online channel purchases saw the largest overall increase in grocery, health and beauty, household, and pet spending. Food, mass, and drug channels saw greater decreases than other channels across all categories.
Footnote: Units have been scaled for US market; units were not volume equalized. Other channels not featured include gas/convenience, limited-service restaurant (LSR; traditional food service not included), club, liquor, home improvement, specialty food, farms, electronics, military, and pet specialty. Grocery category experienced an increase in purchase frequency via LSR channel from Nov 2021–Oct 2022 and Nov 2022–Oct 2023. Pet category experienced a decrease in units via the pet channel from Nov 2021–Oct 2022 and Nov 2022–Oct 2023. Pet specialty channel excluded.
Source: Numerator.
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To read the article, see “Consumers: Spending more to buy less,” February 16, 2024.