KPMG consumer pulse survey | March 2023

Focused on mall visits and spend, online and in-store grocery spend, and environmental and social responsibility

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KPMG consumer pulse survey | March 2023

Focused on mall visits and spend, online and in-store grocery spend, and environmental and social responsibility

In February 2023, KPMG polled more than 1,000 consumers across the United States to learn about their expected spending habits for the year as well as shifts in buying behaviors across categories and channels.1 We also set out to learn more about consumer behavior around the importance of environmental sustainability and social responsibility as criteria in their product choices.

Responses show that U.S. consumers continue to grapple with rising food and housing costs, which are impacting much of their discretionary spending habits, with travel and vacations being the sole notable exception. Nearly four out of five consumers report that their household income increased or stayed the same in 2022 versus 2021.2 Shopping trips to the mall are likely to decline modestly in 2023,3 and online grocery shopping is likely to decline for more than a third of consumers.4

    

Inflation continues to take a toll. 

Consumers say they will delay purchases in big-ticket discretionary categories such as furniture (8.8 percent), home improvement services (5.5 percent), and electronics and appliances (3.4 percent) and expect to spend more on essentials, events, and services.5 When consumers shop for essentials, they are picking up more low-price and private-label brands.

In-store grocery shopping is back.

Consumers intending to shop in-store for more than three-quarters of their monthly grocery purchases—split almost evenly between supermarkets and mass-market chains.6 More than a third of consumers say they will use online grocery shopping less in 2023.7 Value pricing is top of mind, as one in three consumers say they visit multiple grocery stores for price, selection, and quality.8

Consumers shift from wants to needs
Consumer expectation on spend

Expected grocery spend 2023 compared to 2022
 

Ringing in the new year with a recession?

While most respondents in our survey are expecting and preparing for a recession in the next 12 months, many believe it will not be too severe and predict it will less than a year.5   

Ringing in the new year with a recession?

While most respondents in our survey are expecting and preparing for a recession in the next 12 months, many believe it will not be too severe and predict it will less than a year.5   

Too much and not enough inventory

While 80 percent of respondents expressed concerns over inventory shortages in 2021, this seems to have flipped in 2022 with 59 percent of them anticipating minimal shortages. Additionally, 30 percent of executives expect no shortages, compared to only 3 percent that expressed little or no concern over shortages.4

Ringing in the new year with a recession?

While most respondents in our survey are expecting and preparing for a recession in the next 12 months, many believe it will not be too severe and predict it will less than a year.5   

Ringing in the new year with a recession?

While most respondents in our survey are expecting and preparing for a recession in the next 12 months, many believe it will not be too severe and predict it will less than a year.5   

Ringing in the new year with a recession?

While most respondents in our survey are expecting and preparing for a recession in the next 12 months, many believe it will not be too severe and predict it will less than a year.5   

Too much and not enough inventory

While 80 percent of respondents expressed concerns over inventory shortages in 2021, this seems to have flipped in 2022 with 59 percent of them anticipating minimal shortages. Additionally, 30 percent of executives expect no shortages, compared to only 3 percent that expressed little or no concern over shortages.4

Ringing in the new year with a recession?

While most respondents in our survey are expecting and preparing for a recession in the next 12 months, many believe it will not be too severe and predict it will less than a year.5   

    

Mall trips are likely to decline modestly. 

 

This year’s survey responses indicate that consumers may make fewer trips to the mall.9 This reflects the intention to reduce discretionary spending. However, spending per trip to the mall is up across all age cohorts, except for Millennials.10 Under 18 Gen-Z consumers are discovering the mall and driving a mall renaissance with their interest in exploration, eating, and social shopping.11

Environmental sustainability and social responsibility are rising forces. 

More than 35 percent of consumers report that environmental sustainability is important to purchase decisions12 and one in three consumers say a company’s social responsibility is important.13 Gen Zs over index on the importance of sustainability and social responsibility to purchase decisions,14 which has significant implications for the products retailers will offer and their social positions in the future. These younger shoppers are also more likely to use alternative payment methods and platforms.15

    

Average number of trips to the mall

Environmental sustainability is important to purchase decisions

Consumers share their changed behavior
Consumer pulse survey | March 2023
Consumer pulse survey 2023 infographic
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Consumer pulse March 2023 report
Consumer pulse survey | March 2023

Footnotes

1 Consumer pulse Winter 2023 report, KPMG LLP, March 2023. Survey fielded January 31, 2023-February 10, 2023. (All slides referenced in this report are from this source unless otherwise noted.)
2 Slide 10
3 Slide 39
4 Slide 26
5 Slide 13
6 Slide 31
7 Slide 26
8 Slide 31
9 Slide 39
10 Slide 43
11 Slide 45
12 Slide 57
13 Slide 63
14 Slide 64
15 Slide 21

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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
Julia Wilson

Julia Wilson

Principal, Advisory Strategy and ESG, KPMG US

+1 404-222-3511
Monica Rodriguez

Monica Rodriguez

Director Advisory, Strategy - PDT, KPMG US

+1 917-671-7973