US shoppers trade down to discount brands as inflation bites, BofA data shows

· Retail & E-commerce · United States

U.S. consumers are doubling down on bargain hunting as inflation squeezes household budgets, according to Bank of America data reported by WWD. Shoppers—led by financially stretched Millennials—are trading down to discount brands or cutting discretionary spending altogether. The pattern points to a bifurcating market in which value positioning gains share while full-price discretionary categories lose traffic. For retailers and brands, the data reinforces expectations that price sensitivity, not brand loyalty, is driving holiday-season purchasing decisions this year.

Why it matters：Trading-down behavior shifts market share toward discount and value formats, forcing brands to reconsider pricing and promotion strategy heading into the holiday season.

Key points

  • Bank of America data shows Millennials leading the trade-down
  • Consumers are cutting discretionary spending or switching to discount brands

Sources (original reporting)

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