Shifts in Consumer Spending: 3 Key Numbers

Consumer spending has been shifting dramatically, with factors like tariffs, persistent inflation, and ongoing economic and geopolitical uncertainty taking a toll on retailers this year. According to a recent survey conducted by Upside, 79% of consumers have altered their shopping habits in response to tariffs. Despite a modest 0.6% increase in revenue for convenience stores, this growth was overshadowed by a 2.5% increase in category inflation.

In this article, we delve into the data from the Upside survey, exploring how consumer behaviors are evolving in the face of these challenges. Here are three significant numbers to understand the shift:

3.2

This figure represents the average number of convenience stores a consumer visits each month. Retailers in the convenience store sector have long worked to cultivate loyal customer bases, but rising inflation seems to be eroding that loyalty. Consumers now visit an average of 3.2 c-stores monthly, matching the frequency with which they shop for groceries but slightly surpassing their visits to restaurants. Compared to last year, the number of c-store visits has risen by 17%, a growth rate significantly higher than the increase seen in either grocery stores or restaurants.

Additionally, consumers are now visiting an average of 2.6 gas stations each month, marking a 7% increase year over year. This suggests that fuel-related decisions remain relatively stable, despite the broader shifts in shopping habits.

54%

Over half of consumers54%actively compare gas prices when filling up. According to Upside's survey, these shoppers are making informed decisions about where to purchase fuel, factoring price as a key consideration. Price sensitivity also applies to c-stores, grocery stores, and restaurants, where consumers are driven by the search for better deals. Interestingly, the proximity of a gas station or c-store is also a significant factor in decision-making.

Upside's report highlights that the act of price-checking has increased across all retail categories. This practice is most prevalent in the fuel and grocery sectors, with around 60% of grocery shoppers admitting to comparing prices before making a purchase.

38%

38% of convenience store shoppers say they take advantage of loyalty rewards and discounts most of the time or always. While loyalty programs are designed to encourage repeat visits, their impact seems limited. Although a significant portion of consumers (approximately 80%) acknowledges the importance of loyalty, a smaller percentage actively uses reward systems. Retailers, despite their investments in loyalty initiatives, have reported little change in customer participation and behavior regarding these programs.

In fact, a separate survey of retailers revealed that about half of the businesses observed minimal shifts in loyalty program effectiveness. Despite the continued focus on these rewards, the return on investment remains underwhelming.

Sources:

• 3 Big Numbers: Consumer spending shifts