Bobby Gibbs Shares Insight On Consumer Spending Trends
April 13, 2023
Retail sales declined in March, and trends show that consumers are cutting back on pricey items, such as cars and electronics.
Further, even general merchandise and department stores are seeing drops in spending in March compared to February, a decline that reflects slowing inflation.
Partner in Oliver Wyman's Retail and Consumer Goods Practice, Bobby Gibbs, is able to give an explanation on these downward trends, “As prices are starting to normalize, you’re seeing continued year-over-year declines in units in many parts of the sector, without the same level of price increases, which means slowing sales."
Gibbs explains that consumers are concerned about prices, but with increasing wages and steady employment, this trend could shift, " “As consumers see their income growth start to match some of the price growth, that will probably adjust some of the price sensitivity.”
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