No Comparison Shopping For Old Men

Earlier this May, the National Retail Federation (NRF) released the results of its most recent consumer survey. This monthly poll is designed to assess the number of Americans who say the economy is affecting their household spending while also taking a closer look at the factors that are contributing to this perception.

And according to the NRF, a lack of bad economic news in May could positively influence consumer spending in the months to come. Conducted by business intelligence provider Prosper Insights & Analytics, the survey found that 83 percent of Americans say the economy is currently affecting their willingness to buy: a figure that was down 2 percent from the 85 percent observed in April’s survey.

While not a substantial decline, the source indicated that the downward shift has been corroborated by other notable studies. For example, a release for the report noted that these findings were echoed by a Bloomberg report that revealed that consumer confidence in the economy is at an almost six-year high.

Still, as the survey shows, the vast majority of consumers are being impacted by the economy, with many reporting that they are cutting back on small luxuries, shopping at discount stores more often and comparison shopping with the help of new technologies.

“People want to believe in future growth for the economy, but they are having a hard time keeping the faith and are trying to be as conservative as their budgets will allow,” Pam Goodfellow, a Prosper Insights and Analytics analyst, said in a statement.

In this PYMNTS.com Data Point, we take a closer look at the ways consumers are cutting back and what that could mean for the retail industry as it looks to target frugal shoppers in the coming summer months.

How Americans Are Reducing Spending

While more than half of those surveyed – 54.5 percent – said they were taking steps to lessen their overall expenditures, these Americans differed on how they say they are doing so.

The most common activity reported by the sample was shopping for sales more often, a practice that the NRF says 43.1 percent of adult Americans are engaging in regularly. Further, 41.1 percent of poll takers indicated that they were using coupons more often, 37.8 percent said they were dining out less often and 32.1 percent said they were traveling less or foregoing trips altogether.

Further, the majority of Americans in almost all the demographics surveyed reported that they are focused on saving, with only figures for those 65 and older dropping below the 50 percent mark.

How Technology Is Helping Americans Save

Another common theme found by the NRF report was that consumers are taking advantage of new technologies in an effort to save, using computers and mobile phones more regularly as part of their monthly budgeting efforts.

In particular, 29.2 percent of respondents said they have price shopped online before making a purchase, while 6.9 percent have conducted the same practice via their mobile phone. However, the study did find that a gap exists in the demographics that report to using the two practices. When it comes to online shopping, excluding those in the 18- to 24-year-old demographic, between 27 percent and 32 percent of the members of all other age groups told the survey takers that they engaged in this activity.

By comparison, mobile comparison shopping was far more popular with younger demographics, with roughly 10 percent of those in the 18- to 34-year-old age bracket admitting to this practice. Mobile comparison shopping dropped off dramatically among individuals 55 years old and over, with only 2.7 percent of those aged 55 to 64 and 1.7 percent of those 65 years old or older using this method when purchasing.

Surprisingly, slight decreases were also seen in the number of poll takers who said that they were comparing purchases online before buying, vetting prices via mobile phone, using coupons and shopping for friends in May, when compared to the previous month.

Household Spending Plans: April Vs. May

As mentioned previously, 54.5 percent of survey respondents said they were purchasing less overall because of the current fiscal climate in May. While this figure still represents a majority, worried spenders could soon become the minority, as 56.8 percent and 56.0 percent reported these sentiments in March and April, respectively, meaning this report marks a three-month downward trend.

For more insights, read the full report here.