Grocery spend increased in December 2023 for the lowest income group
Envestnet® | Yodlee® data shows that, for the lowest income group (consumers earning less than $25,000), grocery spend increased between November 2023 to December 2023. The average ticket size increased by 6% while the average spend per user increased by 2% (see Figure 1).
These trends were similar to those found in a McKinsey survey, conducted in July 2023, in which two-thirds of consumers reported spending significantly more on groceries in the past two to three months compared with the previous year. Moreover, nearly 60% of respondents said grocery spending represented a significantly higher share of their income.
Lowest income group adapted by decreasing other expenditures
Yodlee month-over-month data from November 2023 to December 2023 suggest that other spending categories experienced declines in December 2023 (see Figure 2). The average expenditures on discretionary categories such as restaurants and leisure activities experienced low single digit drops. Categories such as electronics and appliances segment experienced a 15% reduction in expenditures while home furnishing experienced an 11% reduction in expenditures. Both apparel and home improvement showed a 9% reduction.
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About Envestnet | Yodlee Merchant, Retail, Shopper, and Spend Insights
Envestnet | Yodlee Merchant, Retail, Shopper, and Spend Insights utilize de-identified transaction data from a diverse and dynamic set of data from millions of accounts to identify patterns and context to inform spending and income trends. The trends reflect analysis and insights from the Envestnet | Yodlee data analysis team. By combining data with intelligence – connecting vast amounts of actual de-identified shopping data with state-of-the-art analytics and machine learning – Envestnet | Yodlee provides visibility into a large set of shopping daily purchase behavior including, but not limited to, transactions, customer lifetime values, and merchant/retailer shares.
To learn more about Envestnet | Yodlee Merchant and Retail Insights and get a free demo, please contact an Envestnet | Yodlee sales representative.
