Source: People's Daily - People's Daily
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The end of each year is the traditional discount promotion season in Western countries, and major merchants have launched a variety of promotional activities to stimulate consumption. This year, affected by the continuous increase in inflation and the rising cost of living, the consumer confidence of people in many Western countries has declined, consumption power is insufficient, purchasing behavior has also changed, and the shopping season has encountered a "cold snap".
United States -
Consumers lack confidence in the economic outlook
During the "Black Friday" shopping season, the reporter saw in a shopping center in Virginia, USA, that the best-selling clothing, toys, home appliances, etc. in previous years were less popular, but the clearance goods discount area attracted many customers. When people choose holiday gifts, they carefully compare prices. "Prices are going up, and I have less budget than I did last November." A customer named Manuel Rojas complained.
The New York Times reported that this year-end shopping season, Americans are "particularly sensitive" to prices. Due to the expected slowdown in the US economic growth, many merchants are running discount promotions in order to clear their inventory as much as possible in the coming period. US public radio also believes that high inflation has cast a shadow over this year's shopping season. In the survey, more and more people said that they will go to discount stores or dollar stores to make purchases.
U.S. inflation has been hovering around 8% for the past 10 months. Among them, the price of daily necessities such as food and gasoline has risen the most obviously. Data released by Moody's Analytics showed that U.S. households spent $433 more on the same goods and services in October than a year earlier, while the average hourly earnings shrank 2.8% in the first 10 months of the year, adjusted for inflation. Increased spending and lower incomes have led to a significant decline in consumer purchasing power. Total U.S. household debt soared $351 billion in the third quarter of this year, the largest increase since 2007.
Merchants are also feeling the pressure. From the data, many institutions predict that sales during this year's holiday shopping season will increase slightly year-on-year, but considering the inflation rate, the actual sales are not as good as last year's level. Retailers such as Walmart, Target and Amazon have said rising food and gasoline prices are "tightening" household budgets, leaving toys, furniture and small appliances selling less than before.
Reuters reported that U.S. consumer confidence fell to its past four-month low in November, and U.S. households' willingness to buy big-ticket goods in the next six months fell amid the double whammy of persistent inflation and rising interest rates, which heightened the risk of a U.S. recession next year. Lydia Bussul, an economist at Ernst & Young, said that even if consumers continue to shop, "they are frustrated with the overall economic situation and will become increasingly reluctant to spend".
France –
Rising prices have reduced people's willingness to buy
As the Christmas season begins, the Le Bon-Marce, Paris, France, is renovated, and many craftsmen are selling or making handicrafts in the mall and taking advantage of the "Black Friday" shopping festival promotion. One of them, 28-year-old designer Marie Beuys, creates jewelry according to her customers' individual needs and offers unique gift options. However, during this year's shopping festival, she clearly felt that people's enthusiasm for buying non-necessities, including jewelry, declined.
"Many customers come to my workbench to watch, ask, and end up buying very little. Compared to this time last year, my orders are about 1/3 less. People don't seem to want to spend too much on non-essential items like jewelry, backpacks, etc. Boyce told reporters, "I can fully understand this situation." For my part, my monthly shopping expenses have been reduced by 200 euros due to rising heating bills and higher prices for daily necessities. ”
Not just Boyce, but the vast majority of French people believe they are suffering from rising prices. According to a survey commissioned by the French commercial FM television station in November, 85 percent of respondents said they had to "tighten their belts" and reduce purchases of non-essential items. 73% of respondents believe their purchasing power has dropped significantly, an increase of 16% from last year. More than 1/3 of respondents said they would forgo certain food purchases and reduce heating bills.
The price of the "vegetable basket" of the French has risen significantly. According to a survey released on December 5 by French news radio and market research firm Nielsen IQ, the price index of a basket of 37 daily consumer goods increased by 14.43% year-on-year. In one year, flour prices increased by 43%, beef prices by 32%, ketchup prices by 28%..."What I bought last year for 100 euros in supermarkets will cost about 120 euros this year, and I can only choose cheaper brands, or reduce the purchase of non-essential items." At the Carrefour supermarket in Paris, a customer told reporters.
The latest data from the French National Institute of Statistics and Economics showed that inflation remained high at 6.2% in November, and food prices continued to rise. The French newspaper Le Les Echos pointed out that the current high inflation is dragging down French consumption and economic growth, and the uncertainty caused by soaring prices and the energy crisis has made French households "more cautious" and more inclined to precautionary saving. The poll also showed that 91% of respondents are worried that purchasing power will continue to decline in the coming months, and 89% are worried that their daily lives will continue to deteriorate due to rising prices.
Spain –
Inflation forces consumers to change their shopping habits
Lights, balls, garlands, Christmas trees... Many malls in Madrid, Spain, are preparing for the upcoming Christmas, but the number of customers who come to shop for Christmas gifts is not as endless as in previous years.
At a warehouse-style supermarket outside Madrid, reporters saw Christmas gifts and decorations shelves being left out in the cold, and some customers put their goods back on the shelves after seeing the price marked. The vast majority of customers' shopping carts are filled with daily necessities such as food, beverages, and toilet paper. Customer Carmen told reporters: "In the past, I would buy four or five gifts for children, but this year I am ready to buy one or two to save some expenses." ”
According to media reports, about 1/3 of Spaniards will spend less on Christmas gifts this year, and only 6% said they will spend more on gifts. Spanish consumers are expected to spend €900 million less this year on the Christmas season than last year, down 14% year-on-year.
Under the influence of factors such as the spillover effect of the Fed's aggressive interest rate hikes, Spain's inflation rate continues to rise. High inflation is changing the consumption habits of Spaniards. According to the Spanish Radio and Television Company, 3/4 of consumers no longer buy fresh products, but instead buy discounted ingredients with a near-expiration date or frozen foods that can be stored for a long time.
Jessica, who lives with her parents, will celebrate Christmas with her family this year. Fearing that prices will rise even more when Christmas arrives, they have already begun to prepare for the Christmas menu. "In previous years, we would only buy ingredients a few days in advance, but now we have to start buying them a month in advance. Because we have a large family and are worried about price changes, we bought a lot in advance. It's hard to imagine how it would be now. Jessica said.
(Washington, Paris, Madrid, December 18)
People's Daily (December 19, 2022, Version 14)