In a holiday that will be closely watched as an economic gauge, market researcher Numerator stated that, while most consumers plan to celebrate Independence Day, the majority of celebrants expect at least a moderate inflation impact to spend less, purchase items on sale and focus cutbacks on dining out and fireworks.
Respondents to a Numerator survey reported that they intend to cut back on spending and travel and spending due to inflation with 39% planning to buy fewer items this 4th of July than in previous years and 27% traveling, as gas prices weighed especially among those who might otherwise hit the road.
The majority of consumers, 64%, will spend less than $100 this Independence Day although 28% plan to spend more than $100, with Gen X having the biggest spending intention.
- 62% of celebrants said they would purchase items on sale to save on their shopping.
- 37% plan to prepare more budget-friendly snacks and meals.
- 36% will use coupons.
- 26% will switch to private label/store brands.
- 25% will shop at dollar or discount stores.
- 29% will cut back on dining out and fireworks.
- 25% will purchase less meat or seafood
- 24% will spend less on holiday decorations.
Grilling remains the most planned activity, with 60% of consumers planning to grill, while 53% plan to gather with family and friends. Both activities lost celebrants as compared to last year, down five points and 12 points, respectively.
Consumers mostly plan to hit the bricks and mortar for Independence Day, at 88% with 68% expecting to shop in-store at a grocery store, 47% at a mass merchant or big box store, 32% at a club store.
Among those intending digital purchases, younger generations prefer Costco.com and Target.com. Gen Z is more than twice as likely to shop at Costco.com, and Millennials are 33% more likely to shop at Target.com.
Generations plan to celebrate differently as Millennials are more likely to attend or host an Independence Day party, with an Index 112 versus the 100 index baseline for all consumers. Gen Xers are more likely to go out for food or drinks, index 113, and Boomers and other older consumers intend to gather with family and friends, index 109.
Almost all celebrators, at 95%, plan to purchase something for the holiday, including snacks, at 60%, meat & seafood, at 56%, fruits & vegetables at 45%, and side dishes at 45%.
In addition, 45% of celebrants plan to purchase alcoholic beverages with beer as the top choice across all age groups.