What: Survey reveals increased intent to slash budgets from apparel to travel this Summer

Why it is important: This shift in consumer behavior could have substantial implications for retailers, forcing them to adapt by focusing on product sizing, enhancing customer experience, and potentially lowering prices to maintain demand.

KPMG's 2024 summer consumer pulse survey reveals a significant shift in U.S. consumer spending habits, with many planning to reduce their budgets for apparel, travel, dining, and entertainment. The survey, which gathered insights from over 1,000 adults, found that 34% of respondents intend to spend less on apparel, while a majority plan to cut back on travel and vacations. This tightening of budgets is largely driven by inflation and economic concerns, prompting consumers to seek discounts and shop more frequently at discount and secondhand stores. The findings also highlight a growing emphasis on sustainability among young shoppers, who are more conscious about their purchases.

Additionally, the survey underscores generational differences in attitudes toward paid memberships and data collection. Millennials are most likely to use paid services for convenience and improved quality, whereas Gen X and Baby Boomers prioritize cost savings. Notably, Gen Z consumers are the least aware of companies' data tracking practices, yet over half of all respondents expressed willingness to trade personal data for financial incentives. Retailers may need to adapt by focusing on enhancing customer experience, product sizing, and potentially lowering prices to maintain demand in this challenging economic climate.

Survey reveals increased intent to slash budgets from apparel to travel this Summer