Consumer sentiment appears to be stabilizing and certain shopping categories remain unaffected in an uncertain economy. 

In our April Attentive Consumer Pulse, a monthly survey of 600 US consumers, we found there was some hesitancy when it came to shopping. In our May survey, consumers are still reporting being cautious, but not as cautious as they were last month. 

At a macro level, underlying economic factors remain solid (such as the inflation rate and labor market). Plus, some agreements around tariffs are being reached, like with the UK, and progress made with China, which is lowering tariffs and as a result, stabilizing consumer sentiment regarding the economy and household spend. 

Shoppers are still cautious, but sentiment isn't dropping further and some hesitancy is lifting. We’re seeing these updates reflected in our latest Consumer Pulse, with shoppers surveyed just last week. 

Our goal with this survey is to stay on top of the latest trends, track how consumer mindset is shifting month to month, and provide recommendations for marketing in a fast-moving and uncertain environment.  

Here are the four key takeaways from May’s Attentive Consumer Pulse. 

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1. Consumers remain cautious, but are stabilizing spend

Survey says:

• 32% say their spending on non-essential items has decreased slightly over the last month, down from 43% in the previous three months.
• 44% have delayed or canceled a planned purchase in the past month, versus 49% in the previous three months. 38% have no plans to cancel or delay a planned purchase, compared to 30% in the April Pulse.
• 65% plan some change to how they shop in the next month if the economic concerns continue, down from 78% in April. 

With updates on tariff deals and no major macro shifts, consumers are showing signs of stability in the last month. We saw positive improvements in how consumers are feeling about the economy, and that they’re feeling more confident about spending on non-essential items and going ahead with planned purchases.

This is an optimal time to engage customers as their outlook on the economy improves. Share social proof or reviews to make shoppers more comfortable with their purchasing decisions, and include incentives that make a purchase a no-brainer for shoppers, like free shipping or a BOGO deal. 

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2. Age plays a significant role in changes in purchasing behavior

Survey says:

• 27% of Gen Z say their spending on non-essential items has decreased slightly over the last month, and they’re more likely to switch to lower-cost alternatives (62%).
• 29% of Millenials say their spending on non-essential items has decreased slightly over the last month.
• 34% of Gen X say their spending on non-essential items has decreased slightly over the last month, and they’re much more likely to buy fewer items if economic conditions continue (77%).
• 37% of Boomers say their spending on non-essential items has decreased slightly over the last month, but they’re less likely to cancel a planned purchase (only 26%). 

Younger generations haven’t slowed their discretionary spending as much as older generations, and they’re more likely to switch to low-cost alternatives if they need to change their shopping behaviors. Gen Z isn’t as hesitant to shop, but they're showing some hesitancy around price. Target Gen Z with special promotions, invitations to loyalty programs that help them save over time, or offers that bundle items at a discounted rate.

Older generations are more likely to stick with planned purchases but have decreased their spend on non-essential items. Gen X seems to be the most budget-conscious as they're most likely to buy fewer items if the current economic conditions continue. Engage these shoppers with personalized product recommendations, clear and upfront pricing, and triggered journeys based on their browsing habits. 

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3. Consumers’ level of price sensitivity varies across categories

Survey says:

• Consumers reported that price increases will be noticed in frequently purchased categories.
• Grocery is the most price-sensitive category, followed by home and apparel, showing that consumers are especially aware of price shifts in frequently purchased categories, or significant investments. 
• Books, sports and entertainment, and fitness and wellness are the least impacted categories, suggesting consumers hope to continue to enjoy leisure time and prioritize wellness.  

Price increases will be noticed in frequently purchased categories, but consumers want to invest in experiences and leisure time this summer. You have the opportunity to market to a receptive audience that's actively looking for ways to improve their quality of life and have fun this summer. 

Create campaigns around your best-sellers that retarget website browsers, refine any cart abandonment journeys to ensure shoppers have what they need this summer, or build campaigns that are non-promotional in nature but keep subscribers engaged, like a summer vacation playlist or workout guides. 

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4. Consumer sentiment about the holidays may be picking up

Survey says:

• 74% anticipate some change to their holiday spend, down from 80% in April. 
• 31% plan on buying fewer items, compared to 34% in April, and 35% will search for more deals and discounts, compared to 44% in the last Pulse.
• 27% will start shopping earlier, holding steady from the previous months, meaning brands should continue to plan for the season to start as early as September.
• 45% of Gen Z shoppers will start shopping earlier for the holidays.
• 17% of Boomers will start shopping earlier for the holidays. 

Millennials, Gen X, and Baby Boomers remember getting up while it was still dark to get to the stores early for prime Black Friday deals. As BFCM sales moved online, the younger generations have embraced holiday shopping from the comfort of their homes—and are expecting earlier access to BFCM deals.

Brands should expect an earlier start to the holiday shopping season, but may not have to discount products beyond their usual BFCM deals. There was about a 10% decrease in consumers saying they’ll be searching for more deals and discounts this holiday season. 

We’ll continue to share consumer sentiment and behavioral changes in the current economic climate each month. If you’re an Attentive customer and want to discuss some of these strategies and insights in more detail, please reach out to your CSM.