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The latest survey conducted by Vericast found that when it comes to home retail, consumers have competing priorities. Shoppers are faced with deciding between a do-it-yourself (DIY) or treat yourself mentality, along with a potential conflict between value-seeking and values-based buying.
Vericast’s annual 2022 Retail TrendWatch report reveals how the priorities and preferences driving consumer spending behaviors are shifting. Nearly 2,000 consumers were surveyed about their spending, while about 270 home retailers and service providers were polled on their marketing and operational challenges.
“We are still seeing a strong desire to nest at home. However, recent headwinds such as increasing costs and delivery delays for home retail and service providers can create challenges for consumers and is influencing shopping behavior,” said Dave Cesaro, Executive Director Client Strategy at Vericast. “This volatile environment has produced a ripe opportunity for retailers to sway consumers from their preferred product or brand. Businesses that make the most of this receptive mindset, and focus on strategic approaches to advertising and discovery, will win the hearts of homebodies.”
Based on survey results, the top retail trends to watch in 2022 include:
- DIY projects lead to splurges. In home retail, DIY projects are still on the upswing and money saved on big projects could be spent elsewhere. Twenty-six percent of consumers are doing more home repair, maintenance or improvement projects themselves, with 19% planning to use the money saved to treat themselves to home décor. Further, 29% of people are delaying purchases to save money in the next three months for bigger purchases. Lastly, despite inflation concerns, home luxuries are still in the plan for many, with nearly half of consumers planning to purchase new products or services to enhance the enjoyment, comfort and/or beauty of their home.
- Both value and values are a priority. Factors like rising prices and supply chain delays will continue to influence buying decisions, opening an opportunity for brands to compel consumers to try new products or switch retailers altogether. Survey results found that 55% of people are willing to try a new retailer or provider when purchasing a product or service for their home, and fair prices (55%) and quality (57%) are the top influencers. In addition, when consumers are selecting a new retailer or service provider, 37% of retail advertisers say social and environmental responsibility is a distinguishing factor. Ethics and values-based buying decisions are of particular importance to Gen Z, who prioritize social and environmental responsibility (17%) more than other generations (12%).
- It’s essential to stay top of mind. In this environment, loyalty cannot be taken for granted as a multitude of forces are disrupting legacy buying decisions. Nearly half of consumers agree that product shortages are causing them to switch stores or purchase something different than planned. As such, 50% of consumers are more likely to purchase from a retailer that reaches out at the right time when there is a need for a product or service.
- Mobile, mailbox and social media marketing all hold weight. Consumers are embracing a variety of purchasing and saving options, and a preference for paper or digital deals largely depends on lifestyle. The best approach for retailers is an omni-channel delivery of deals. Furthermore, 81% of advertisers believe that consumers are looking for deals and discounts more than in the past. With that in mind, 54% plan to increase use of social media, 53% plan to increase digital spend and 40% plan to increase use of print to deliver more value to shoppers. Twenty-eight percent of consumers say they are influenced by print coupons, discounts or deals when they’re shopping at a new store, website or home service provider, and 24% say they are influenced by direct mail.
View the full 2022 Retail TrendWatch report.
Vericast is reimagining marketing solutions one business-to-human connection at a time. By influencing how over 120 million households eat, shop, buy, save and borrow, Vericast fuels commerce, drives economic growth and directly accelerates revenue potential for thousands of brands and businesses. While its award-winning portfolio of products, technology and solutions are part of the Vericast story, its people are the true differentiators; trailblazers in data intelligence, marketing services, transaction solutions, campaign management and media delivery.
About Retail TrendWatch
Vericast’s Retail TrendWatch report explores the challenges and opportunities facing retailers in the U.S. For 2022, 268 respondents from retailers in the home retail and home service provider categories completed the survey. Vericast also surveyed 1,841 consumers about their priorities, concerns and plans regarding home retail and home services. Respondents completed the survey from February 15 through March 7, 2022.