CHICAGO -- Although the U.S. economy is miles ahead of where it was during the Great Recession—unemployment has slid from nearly 10% to 3.9%, according to the Bureau of Labor Statistics—consumer anxiety persists. Rapid market growth, the potential for economic crisis and rising oil prices have convenience-store consumers increasingly stressed, Caleb Silver, editor-in-chief of New York-based Investopedia, an investment and finance education website, told CSP Daily News.
“[Gas prices are] an unavoidable expense, whether you’re driving to work or taking your kids around,” Silver said. “Gas prices are climbing into the fall and making people feel anxious.”
Some consumers aren’t stressed, but they're also not optimistic. The number of patrons who are uncertain about today’s marketplace is staggering, Frank Beard, analyst for c-store trends for Boston-based GasBuddy, told CSP. This uncertainty is prevalent among consumers whose household income is less than $35,000. When asked how they felt about their current financial situation, 27% of these consumers said they don’t feel comfortable or uncomfortable. And when asked how they’ll fare financially within the coming year—better off, worse or the same—nearly 28% said they don’t know.
Uncertainty isn’t as drastic in well-off consumers, though. Only 7.5% of consumers who make $50,000 to $75,000 said they’re unsure how they’ll fare within the next year, while less than 3% of those who make $150,000 to $200,000 agreed.
“[This demonstrates] that economic outlook is heavily dependent upon one’s income,” Beard said. “Perhaps more than anything, a sense of stability and certainty is correlated with income.”
Yet real income is at an all-time high, which is increasing optimism, David Nelson, professor of macroeconomics at Western Washington University, told CSP. Although wage stagnation lingers—increasing a mere 2.7% annually, according to the U.S. Department of Labor—the fact that consumers can now make up to $15 an hour in various markets has them feeling good, he says.
And c-store retailers must not overlook younger generations, either. MaryLeigh Bliss, vice president of content for Ypulse, a New York-based syndicated research firm, said millennials and Gen Z are optimistic, yet cautious regarding the future.
“We’re talking about two generations that came of age with the recession impacting their first taste of adulthood or childhood,” she told CSP. “When we look at their feelings about money, they’re optimistic and fortunate, but also worried and overwhelmed.”
Different household incomes result in different shopping sentiments. Understanding these different consumer segments and their specific needs can help c-store retailers increase business, Beard said.
“Retailers must be aware of who their customers are and have an approach that targets people in these different income brackets,” he said. “They should think about how they package and sell food as a cost benefit and how they’re reaching consumers on marketing and advertising strategies.”
Photograph: Shutterstock
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