2022 KPMG Inflation Survey: Consumer & Retail Report

How your Consumer and Retail organization can strike the right balance between pricing strategies and profit margins.

High inflation testing the resilience of Consumer & Retail companies

After months of passing on rising costs to resilient consumers, consumer and retail (C&R) companies are looking to strike the right balance between pricing strategies and profit margins. Many admit that achieving profitability during a 12-month span of high inflation will be difficult. As pricing competition heats up, C&R companies can differentiate themselves by providing the products and shopping experiences their customers now expect.


Placeholder Infographic goes here



Survey highlights

  • 62% cite unforeseen geopolitical risks as a top organizational challenge in MANAGING impacts of inflation
  • 82% expect to raise prices by the rate of inflation (52%) or more (30%)
  • 72% envision passing on price increases in three to six months
  • 74% are looking at right-sizing staff as a means of offsetting the impact of inflation
  • Nearly 40% plan to allow all employees to work remotely to reduce real estate and related spending
  • 65% anticipate increasing their technology spend by 5% to 20% to mitigate inflationary impacts

Accelerating top-line growth
Despite falling consumer sentiment, 82% of companies expect to raise prices by at least the rate of inflation. At the same time, nearly 60% may look to develop new products at lower price points in an effort to maintain or increase customer wallet share.

Protecting the bottom line
In the face of wage inflation, companies are re-evaluating the right size, structure and location of their workforce. They are considering workforce reductions (48%), cuts in non-salary compensation (47%) and relocating staff to lower-cost regions (53%), while also exploring refinancing (54%).

Planning for exogenous factors
With unforeseen geopolitical risks leading the list of organizational challenges, companies are realizing that “dark swans” are lurking everywhere. They are factoring geopolitics into their risk planning, on-shoring or near-shoring more functions, and building resilience into their supply chain and foreign exchange processes.

Responding with technology
With headcount reductions and right-sizing programs looming, companies expect to counter the potential hit to productivity with technology. Among respondents, 65% expect to increase tech spending by 5% to 20%, with AI, machine learning, blockchain and cloud computing increasingly seen as inflation-fighting investments.

Version 2

Key survey findings


Overcoming challenges in managing inflation

Geopolitical uncertainty (63 percent), Rising costs of raw materials is 60 percent, and supply chain bottlenecks (55 percent) continue to present big challenges for consumer and retail companies in their efforts to manage inflation.



Maintaining profitability in an inflationary environment

In managing the inflation-driven increase in the cost of goods, nearly half of the C&R finance executives surveyed (47 percent) believe their companies will not be able to maintain the same level of overall profitability.



Staying true to technology investment

Traditionally, economic downturns trigger companies to cancel projects, or put them on hold, sometimes indefinitely. However, there doesn’t seem to be a halt in technology and digital transformation for C&R companies as 38 percent of respondents plan to increase their technology spend by 10-15 percent.


Investing in top line growth

Despite slowing economic growth, C&R companies are looking to remain competitive and opportunistic. This is evident by the fact that 90 percent of C&R respondents expect to increase capital expenditures between 5 to 20 percent during the next 6 to 12 months.



Read the full 2022 KPMG Inflation Survey 

From bottom line to top line, inflation is top of mind across all industries. The 2022 KPMG Inflation Survey captures a long-term view of how inflation is impacting strategic decisions and corporate behavior. 


Structural Change Watchlist

Structural shifts are more profound than cyclical shifts, as they upend existing business models. Knowing the trends already underway is a powerful advantage when hedging risk. We look at the top 10 structural changes reshaping the economic landscape today.

Our Team

Matt Kramer

Matt Kramer

National Sector Leader, Consumer & Retail, KPMG LLP

+1 614-241-4666
Duleep Rodrigo

Duleep Rodrigo

National Advisory Leader, Consumer & Retail, KPMG US

+1 949-278-2899
Sam Ganga

Sam Ganga

National Consulting Leader, Consumer &Retail, KPMG LLP

+1 312-961-7289
Brett Benner

Brett Benner

Partner, Finance Transformation, KPMG US

+1 267-256-2959
Ken Spigarelli

Ken Spigarelli

Advisory Managing Director, Supply Chain Consumer and Retail Lead, KPMG US

+1 734-231-1311