Consumers Trading Down? You Bet They Are
What recent data on retail and consumer behavior did you review?
My own personal data confirms it. But first, the data.
There is a lot of retail data coming out from both Amazon and the NRF in the last week. The NRF looked at last month's credit card data and concluded that consumers are extremely focused on value at the moment, even though consumers are still buying. What they are buying is not the same as it was before.
How are consumer buying habits changing according to the NRF and Amazon?
This matches what Amazon's CEO Andy Jassy recently said on CNBC. He indicated that consumers are extremely price-conscious and are trading down when options are available. This goes in line with his recent comments about lowering Amazon's cost to serve so that the company can afford to offer lower-priced items on Amazon and still return a profit.
How does personal experience confirm the data on consumer price consciousness?
I was recently searching for replacements for my long-time favorite Bombas running socks since mine had finally worn out. The cost? 6 pairs of socks, $74.
Excuse me? Hell no.
One search on Amazon, same materials... 6 socks $14.00. Next-Day Prime. For that price, I could donate 6 pairs myself instead of the only one pair that Bombas is donating. This has to be some kind of warning to other DTC brands that have gotten over their skis.
After all, it's just socks.
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