How Your Brand Can Respond When Consumer Demand Shifts

Today feels like a constant rollercoaster of change. Brands are facing uncertainty and new challenges as consumers shift their purchasing behaviors, including what and how they buy, almost daily. Our mission at RetailMeNot is to connect consumers with the brands they’ll love through the power of savings. With millions of daily visits to our site, we are uniquely positioned to help you navigate these challenging times by keeping you up-to-date on the latest shopper trends and opportunities.

Check back often as we update this page with insights on consumer shopping behaviors, promotional landscape shifts and strategies to help you stay relevant during upcoming seasonal events and holidays. 

Below is a snapshot of how consumers responded to COVID-19 as concerns escalated over the past few weeks --for specific category insights and a look into how brands shifted their promotional strategies in response, download our Trends to Watch report. 

Consumer Response to COVID-19: Demands Change

RetailMeNot started to see category demand trends change in mid-February (week 8). Most notably, the travel category saw significant declines as travel advisories—then eventual restrictions—began to roll out.

As more Americans began working from home and practicing social distancing, consumer interest shifted towards categories that would help them stay productive and healthy. As a result, we saw increasing demand across the following areas: 

• Necessity spending on office supplies, baby items, food subscriptions and delivery.

• Entertainment spending on toys, hobbies, home improvement, party supplies, cable and lingerie.

• Health & Wellness spending for vitamins & supplements, workout equipment, outdoor sporting goods and more. 

Looking Ahead: Is Essential Shopping Here To Stay?

Short answer...no. We anticipate that necessity stockpiling will taper off as consumers settle into this new normal at home. They will begin to feel more comfortable in work-from-home environments, and current category upticks will start to level out. 

Consumers will soon be looking for ways to entertain themselves from the comfort of their own home for as long as social distancing continues. They’ll  continue to take stock of what essentials they need to purchase, but it’s also likely that they may want to indulge in non-essentials to regain a sense of normalcy. They also may find they have more time to shop, providing new opportunities for a wide range of retailers to reach this engaged audience. 

The brands that will come out ahead are the ones who use this opportunity to  help their consumers by making everyday life more affordable. Let us be your strategic adviser to help you manage demand and offer the right promotional incentives during this unprecedented time. With key Q2 holidays coming up, like Easter and Mother’s Day, remember to check back frequently to read up on the latest data and trends. 

By: Anna Rash