As inflation continues to loom and becomes a growing concern among consumers, we decided to survey Nextdoor neighbors to see how their attitudes toward shopping and spending have changed. Unsurprisingly, neighbors have made adjustments to the way they shop as a result of the change in costs for goods. While neighbors grapple with increasing costs and look for more ways to save, a few key trends have emerged:
More money is being spent in local communities
Neighbors are limiting long-distance travel to cut costs, which in turn has increased the amount of spending in their own communities. In fact, neighbors see big box stores as part of their communities and spend more when they act like it.
- 66% consider stores like Walmart, Target & The Home Depot part of their community1
- 58% are more likely to shop at stores that sponsor local events or community groups1
- 26% shopped online more to cut back on driving1
- 23% increased spending at stores closer to home1
Private label brands have become more popular
While neighbors haven’t completely abandoned national brands, private labels are finding newfound success among consumers.
- 36% have purchased more private label products as a result of the price increases1
- 84% believe that the quality of private label products are usually just as good as those from the national brands1
Money-saving measures = a big win for the planet as neighbors look to cut costs and increase efforts to be more eco-friendly
As consumers buy more products in bulk, reuse products more and drive less, the result has been a reduction in emissions and waste. Now is the time for brands to help consumers live sustainably for less through green-inspired incentives (e.g. bringing in used items for discounts).
- 70% are willing to abandon brands that do not take sustainability seriously2
- 22% have bought more products in bulk1
- 21% are reusing products more1
Special offers and discounts matter more than ever
When deciding on a product, Neighbors are more influenced by a price drop than a price increase. Matching private label pricing may be difficult for national brands, so highlighting other attributes like efficacy or environmental impact could help slow attrition.
- 32% searched for a promo code to use before ordering meal1
- 28% dined at or order from a specific restaurant solely because of a promotion1
For brands trying to reach new customers in the midst of inflation concerns, Nextdoor provides ample opportunities to reach your target audience. Learn more about how Nextdoor helps businesses convert neighbors into customers here: business.nextdoor.com/enterprise
Sources:
1Nextdoor Survey (06/2022)
2Oracle Survey (04/2022)
