Omni Talk Retail Podcast Summary

Episode: 🧠 5 Insightful Minutes Inside the Mind of Today’s Shopper | 5IM
Release Date: May 28, 2025
Host: Omni Talk Retail
Guests: David Schneideman, A and M Consumer and Retail Group

Introduction

In this episode of Omni Talk Retail, hosts Chris Walton and Anne Mezzenga delve into the latest consumer sentiment trends with David Schneideman from the A and M Consumer and Retail Group. The discussion centers around current consumer behaviors, spending patterns, and strategic insights for retailers navigating the evolving retail landscape.

Current Consumer Sentiment

Dave Schneideman begins by outlining the impact of macroeconomic factors on consumer sentiment as summer approaches.

“With the macroeconomic uncertainties, you know that is having a huge effect on consumers... consumers are planning on spending less and they're planning on saving more.”
[00:26]

Schneideman highlights that events such as COVID-19, supply chain disruptions, geopolitical tensions, inflation, and tariffs have collectively influenced consumers to adopt a more cautious approach. Specifically:

• 10% of consumers plan to reduce their overall spending.
• 30% of consumers intend to increase their savings.

He emphasizes that the primary area of reduced spending is discretionary, including sectors like:

• Restaurants and prepared foods
• Luxury goods, such as jewelry and accessories

Despite these shifts, spending in Food & Beverage (F&B) remains relatively stable, suggesting that while consumers are cautious, essential spending areas maintain their footing.

Consumer Trade-offs for Better Value

The conversation shifts to the specific trade-offs consumers are willing to make to gain better value.

“About 50% of consumers are planning on switching to cheaper brands... applying to mass big box stores or discounters.”
[01:50]

Key strategies consumers are employing include:

1. Switching to Cheaper Brands: Approximately 50% of consumers are opting for more affordable brands to manage their budgets.
2. Reducing Grocery Purchases: Around 25% are purchasing fewer groceries overall.
3. Choosing Discounted Retailers: Another 25% are shifting their shopping to discount or big-box retailers to save money.

Additionally, Schneideman notes a significant willingness among consumers to experiment with new brands:

“About 30% of consumers will try almost, almost 10 new brands. And the leading factor of that is price.”
[02:58]

Other influencing factors include:

• Desire for healthier options
• Recommendations from friends, family, and influencers

The Rise of Private Label Products

The discussion transitions to the growing prominence of private label products in the consumer market.

“Almost 75% of our reports is that people are purchasing private label somewhat often or often... purchase is price.”
[03:01]

Key insights include:

• 75% of consumers are frequently purchasing private label brands.
• Over 50% believe the quality of private labels has improved compared to the previous year.
• Private labels are favored for their:
  • Affordability
  • Quality
  • Better ingredients
  • Increased accessibility

Price remains the dominant driver behind the adoption of private labels, accounting for the majority of purchase decisions, followed by factors like taste and ingredient quality.

Schneideman concludes that private labels are becoming a staple in consumer shopping habits and should be integral to retailers' strategic planning.

Strategic Advice for Retailers

As the episode wraps up, Schneideman offers actionable advice for retailers to effectively navigate the shifting consumer landscape.

“Consumers are engaging in loyalty programs to stretch their spending power... Over 60% are respondents interact with different technologies to influence their buying decisions.”
[04:09]

Key Recommendations:

1. Enhance Loyalty Programs:

   • Approximately 2/3 of consumers participate in loyalty programs within food and beverage and grocery sectors.
   • 75% of purchases among loyalty program members are influenced by these programs, with even higher engagement among consumers under 45 years old.
   • Effective loyalty programs can significantly drive repeat purchases and customer retention.

2. Leverage Technology:

   • 60% of consumers interact with various technologies that influence their buying decisions, particularly subscriptions.
   • 75% of subscription-based purchases are driven by deals, promotions, and convenience.
   • 20% of all grocery purchases are made exclusively through subscription models, reflecting a strong preference for a frictionless shopping experience.

Schneideman emphasizes that integrating loyalty programs with advanced technological solutions can dramatically enhance consumer engagement and purchasing behavior.

Conclusion

David Schneideman provides a comprehensive overview of current consumer sentiment and behavioral trends, offering valuable insights for retailers aiming to adapt and thrive in a dynamic market. By focusing on price-sensitive strategies, embracing private labels, and utilizing loyalty and technology effectively, retailers can better meet the needs of today’s vigilant and value-conscious shoppers.

For a deeper dive into the findings, listeners are encouraged to read the full A and M Consumer and Retail Group's latest consumer sentiment survey available in the show notes.

Notable Quotes:

• “Consumers are planning on spending less and they're planning on saving more.”
  David Schneideman, [00:26]

• “About 30% of consumers will try almost, almost 10 new brands. And the leading factor of that is price.”
  David Schneideman, [02:58]

• “Private label is here to stay... Huge perception improvement and needs to be part of a retailer's plan going forward.”
  David Schneideman, [03:01]

• “Consumers are engaging in loyalty programs to stretch their spending power... They know what they like, they know what they don't like.”
  David Schneideman, [04:09]

This summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for those who haven't had the chance to listen.