Flowers Are Affordable Pleasures During Inflation, CNN Reports
Consumers are holding back on purchasing pricey items as the U.S. dollar inflates, but flowers seem to be among affordable treats they are allowing themselves, CNN recently reported.
“They mostly stop spending on nonessentials, like eating at restaurants,” says Parija Kavilanz of CNN Business. “But they do indulge in tiny pleasures like flowers and candles.”
Kavilanz noted recent statements by retailers Walmart, Target, and market information company NPD.
“There is a tug-of-war between the consumer’s desire to buy what they want and the need to make concessions based on the higher prices hitting their wallets,” said Marshal Cohen, chief retail industry advisor for NPD. “And consumers aren’t just buying less stuff, they are shopping less, which means a loss of the impulse-shopping moments that are critical to retail growth.”
In a recent NPD survey, consumers indicated plans to look for more promotions, seek generally less expensive items, or even cut back on purchases overall in the next three to six months.
“Marketers must be well versed in all the conditions influencing their retail channel, and their target consumer or they will risk missing growth opportunities,” Cohen said. “An appealing shopping environment, displays that make the product pop, and persuasive promotions are necessary to get more items into the basket when consumers do shop.”
Priya Raghubir, professor of marketing at NYU Stern School of Business said consumers spend on small luxuries like perfume even in a downturn, in what’s called the “lipstick effect,” according to CNN.