Another factor that is overlooked is climate change. Droughts and floods were already impacting harvests of major commodities as we entered 2022 and this will continue to impact food commodities.
Lowest income families will be hardest hit, with little, if anything, left for discretionary spending - higher income families will be using COVID savings to support spending.
Non-food sectors, and particularly big ticket products, will suffer, with volumes falling.
There are opportunities for retailers to support consumers by tailoring products and services to needs and budgets
Synopsis
Lowest income families will be hardest hit, with little, if anything, left for discretionary spending - higher income families will be using COVID savings to support spending.
Non-food sectors, and particularly big ticket products, will suffer, with volumes falling.
There are opportunities for retailers to support consumers by tailoring products and services to needs and budgets
Synopsis
- Inflation, and the disruption it is causing worldwide, is the key issue for retailers in 2022.
- This brief examines what is causing it, where its greatest impacts are, what it will mean for consumer behaviour, and what retailers can do to mitigate the damage it causes.
- It analyzes the causes and the global impact and then hones in on the UK consumer as an example of the general retail impact and explains the strategies available for retailers to accommodate a completely different trading environment.
Scope
- Discover the strategies retailers can use to manage costs and margins
- How will different sectors be impacted by the changing economic environment
- The UK spend scenario shows that Q4 will be the most challenging quarter as inflation hits demand the hardest
Reasons to Buy
- Understand not only what is driving inflation globally but how consumers will adjust their behaviour using examples from our exclusive consumer surveys and trackers
- Use our market forecasts and analysis to devise new, successful trading strategies.
Table of Contents
1.Summary - key points2.Context - drivers of inflation, future prospects
3.Consumers - attitudes and behaviour, impact on demand
4.Retailers - prospects, challenges, strategies
- Sources & Contact
- Average Global CPI (Consumer Price Inflation) forecast 2019 & 2022
- Inflation -CPI 2022f per country
- Annual % inflation forecasts for full year 2022, by country, with average per region
- Europe annual % inflation forecasts for full year 2022, by country, with average per region
- COVID-19 Impact - Global Supply Chain Disruption 2020/21
- Russia & Ukraine Energy & Commodities - Russia and Ukraine's share of global commodities
- Destination of Russia Federation and Ukraine Wheat and Sunflower oil
- Forecasts - Energy & Commodity Price 2020-2024
- Currency trends of major economies LCU/USD
- Real GDP % Growth trends of major economies
- UK CPI % growth 2017-2026
- UK % interest rates 2019-2022
- UK Unemployment rate 2017-2026
- UK Gross Household Income 2019/20 - % Share of Individuals by household
- How concerned are you about your personal financial situation? % of UK consumers Q1 2021 & Q1 2022
- Responses to the question - With the price of goods expected to rise by at least 5% this year, how do you think your shopping habits will change for the following items?
- How consumers intend to change their clothing & footwear shopping habits due to rising prices, by demographic
- How consumers intend to change their homewares shopping habits due to rising prices, by demographic
- Strategies consumers are using to reduce their outgoings and save on spending
- Median income by region in the UK
- UK Retail Market 2019-2026 - Inflation & Volume Growth
- UK - Sector Share (%) of Consumer Expenditure in Retail 2019, 2022
- Strategies retailers can use to reduce costs and protect their margins
- Strategies retailers can use to help consumers
