Sago’s latest read on consumers, detailed in its 2024 Shopping Habits and Inflation report, shows how households respond to higher prices. The research revealed that 75 percent of households “are significantly impacted by inflation, leading to major shifts in shopping habits,” a Sago spokeswoman told WWD, adding that the company’s findings also revealed that 79 percent of consumers “are now hunting for the best deals, with 63 percent turning to private label brands.”
Sago’s findings are from an omnibus study of 1,544 U.S. adults and was conducted in July.
The company, which specializes in adaptive research, said what was most striking is the growing distrust in brands, noting that “46 percent of consumers now question whether prices are set fairly.”
Sago’s consumer research also showed that younger demographics have been “slightly more” impacted by inflation as “almost half of those under age 54 report feeling a significant impact, compared to 38 percent of those over 55.” When asked which categories had the highest inflationary price points, 86 percent said it was groceries, “eclipsing increases in beauty, clothing and cleaning products,” the report’s authors said.
Regarding trust, 46 percent of those polled said they distrust brands to set fair prices and 71 percent said brands should disclose price hikes. “[And] while a significant portion of consumers (71 percent) blame supply chain issues for higher prices, a substantial number (63 percent) suspect that brands are primarily interested in increasing profits,” the report stated.
And due to higher costs, Sago found that shoppers have become more frugal and bargain-seeking. Seventy-eight percent of respondents said sales, deals and coupons are more/much more important now than in prior years. And 69 percent said the same for shopper rewards or loyalty programs.
The topic of inflation has become a key point in this year’s presidential election. In a recent news conference, Donald Trump, former president and current presidential candidate, said if elected, he would spend his first day back signing “an executive order directing every Cabinet secretary and agency head to use every tool and authority at their disposal to defeat inflation and to bring consumer prices rapidly down. It will be a whole-of-government effort to raise the standard of living and make American life affordable again.”
Kamala Harris, vice president and presidential candidate, presented an economic platform that includes financial assistance for first-time home buyers and a tax credit for parents of newborns as well as bans on price gouging at grocery stores to battle inflation.
