Pitney Bowes Survey: Half of US Online Shoppers Plan to Take Advantage of Anticipated Markdowns Due to Inventory Surpluses
June 23 2022 - 9:00AM
Business Wire
15% remain unswayed by discounts as they cut
back on spending amid rising inflation and interest rates
Pitney Bowes (NYSE:PBI), a global shipping and mailing company
that provides technology, logistics, and financial services, today
released new findings from its BOXpoll® consumer surveys examining
how rising inflation and interest rates, retailer overstocks, and
loosening COVID-19 mandates will affect consumer shopping patterns
in the next three to six months.
Discounts
As Americans grapple with record-high inflation rates, inventory
surpluses among large retailers are leading to widespread discounts
for US shoppers. Pitney Bowes asked consumers how markdowns on
items like casual apparel, home appliances and furniture will
affect online purchasing behavior in the next six months and found
that 49% of consumers, including 60% of Millennials, plan to buy
more online in the next six months because of these trends. At the
same time, 15% of all consumers are unlikely to buy discounted
items because they are cutting back on spending.
“This summer will present both new challenges and new
opportunities for brands,” said Vijay Ramachandran, VP Market
Strategy, Global Ecommerce at Pitney Bowes. “Overstocks and
markdowns will impact profitability, but also create new openings
to sell as a large portion of consumers seek out deals—further
aided by the return of Prime Day and other mid-year promotions. At
the same time, our survey found a growing number of consumers
cutting back on retail spending altogether as they react to record
inflation and gas prices, and rising interest rates.”
Why consumers continue to shop online
To further examine how consumer shopping behaviors have evolved
in recent months, Pitney Bowes asked BOXpoll survey respondents why
they choose to shop online instead of in-store. The results
revealed that some—but not all—pre-pandemic ecommerce behaviors
have returned.
- More than half (56%) said their motivations for buying online
have changed since the peak periods of the pandemic.
- The number one reason survey respondents selected shopping
online was to save a trip to the store (43%). These consumers,
including 50% of Boomers and 45% of GenX do not mind waiting for
delivery.
- Fear of COVID exposure, while significantly less of a deterrent
to in-store shopping now, than early in the pandemic, is still on
the minds of 15% of consumers.
“The fact is, we’re still waiting on the ‘new normal.’ 2020 saw
unprecedented capacity constraints among ecommerce logistics
networks. 2021 witnessed historic disruptions in the manufacturing
supply chain. 2022 is shaping up to be the year of oversupply and
price volatility. That said, the pandemic has ingrained some online
shopping preferences. Before the pandemic, shoppers were motivated
by the convenience of online shopping as an alternative to in-store
experiences; now we’re seeing the emergence of more consumers
who’ve discovered they genuinely enjoy online shopping,” said
Ramachandran.
“The joy of online shopping—as retailers and brands who spent
the pandemic investing in innovative ecommerce experiences will
see—is a behavior that will only grow in the foreseeable
future—even eclipsing the ‘I need it now’ mentality for the
majority of consumers. ”
Shipping Speed
Another behavior that has varied throughout the past two years
is the perception of shipping speed. Pitney Bowes asked respondents
how likely they are to pay for fast shipping while making online
purchases, compared to three months ago.
- Two-thirds (67%) of consumers are no more likely to pay for
faster shipping than they were three months ago, as ‘appointment
buying’ re-emerges with return-to-work and vacation plans.
- One-third (33%) of both Gen Z and those shopping online more
than they were three months ago said they are more likely to
upgrade shipping than before.
- Twenty three-percent of parents and 22% of Millennials are
willing to pay for speed.
Methodology
The BOXpoll® consumer survey by Pitney Bowes is a weekly
consumer survey on current events, culture and ecommerce logistics.
Morning Consult conducts weekly polls on behalf of Pitney Bowes
among a national sample of more than 2,000 online shoppers. The
results included in this press release are extracted from surveys
conducted over the past month. The interviews were conducted
online, and the data were weighted to approximate a target sample
of adults based on age, educational attainment, gender, race, and
region. Results from the full survey have a margin of error of +/-
2 percentage points. Visit www.pitneybowes.com/boxpoll for the
latest BOXpoll findings.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global shipping and mailing company
that provides technology, logistics, and financial services to more
than 90 percent of the Fortune 500. Small business, retail,
enterprise, and government clients around the world rely on Pitney
Bowes to remove the complexity of sending mail and parcels. For the
latest news, corporate announcements and financial results visit
https://www.pitneybowes.com/us/newsroom.html. For additional
information, visit Pitney Bowes at www.pitneybowes.com.
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Brett Cody Pitney Bowes (203) 218-1187 brett.cody@pb.com
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