{"id":524622,"date":"2022-07-11T16:04:14","date_gmt":"2022-07-11T23:04:14","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=524622"},"modified":"2024-05-10T05:27:40","modified_gmt":"2024-05-10T12:27:40","slug":"inflation-changes-buying-habits","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/inflation-changes-buying-habits","title":{"rendered":"Inflation\u2014And the Geography of Shopping Habits"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","castos_file_data":"","podmotor_file_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[22],"tags":[479832,479842,281,1161,1331],"department":[488812],"wherenext-category":[],"industry":[],"class_list":["post-524622","wherenext","type-wherenext","status-publish","format-standard","hentry","category-esri-insider","tag-consumer-trends","tag-inflation","tag-location-intelligence","tag-retail","tag-supply-chain","department-emerging-technologies"],"acf":{"short_description":"Inflation has altered consumer buying behavior, but like most trends, it\u2019s unlikely to be uniform across geographies.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"With the recent rise in inflation, consumer buying behavior is shifting, and retailers are rushing to adapt. But a strategy that overlooks the role of location risks leaving customer demands unanswered."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Article snapshot:<\/strong> The effort by central banks to tame inflation may pay off in time, but customer behavior has already changed, and business executives with location intelligence are analyzing how\u2014and how they should adjust.","snippet":""},{"acf_fc_layout":"content","content":"Retailers are using in-store bargains, less-expensive store brands, and rewards programs to entice shoppers looking to save money wherever they can, according to the Wall Street Journal<\/em><\/a>. Big-box retailers are shuffling inventory to reflect buying behavior, increasing the supply of private label items and modifying the sizes and quantities they sell. That might include stocking bulk packages of rice and beans and half gallons of milk.\r\n\r\nThose adjustments are a response to recent data showing that over 80 percent of American consumers plan to reduce their spending<\/a> by buying cheaper or fewer products. To anticipate how and where to adjust store shelves\u2014and the supply chains that feed them\u2014retailers and their supply chain partners turn to location intelligence<\/a>, powered by geographic information system (GIS) technology.\r\n

Understanding and Adjusting to Consumer Buying Behavior <\/strong><\/h3>\r\nWhen consumer spending habits change dramatically, executives feel pressure to make smart decisions quickly. But aggregate numbers can hide regional variations in demand<\/a> for certain product categories. Location intelligence adds clarity to that data.\r\n\r\nFor a retailer with multiple stores, a GIS-based dashboard fed by CRM data and other consumer insight<\/a> can reveal demand spikes for certain products in certain geographies. A map-based view can even uncover subtler patterns in buying behavior, showing a correlation in shopping habits, for instance, among stores with similar demographic profiles.\r\n\r\nA retailer, manufacturer, or distributor<\/a> can use the analytical capabilities of GIS to test supply strategies, assessing how to adjust the merchandise mix for customers in certain locations. Planners can weight variables such as transportation cost, delivery time\u2014even how certain distribution routes will affect a company\u2019s Scope 3 emissions and net-zero goals<\/a>.\r\n

Visibility into the Supply Chain <\/strong><\/h3>\r\nOnce a retailer understands how the merchandise mix should change to accommodate consumer buying behavior in specific locations, the next step is planning how to deliver the right inventory to shelves quickly. Merchandise planners need to know where alternate suppliers are located and how soon they can deliver products, or which distribution center should process those goods.\r\n\r\nViewing the supply chain on a map<\/a> answers critical questions by revealing all the entities in the network\u2014plants, multiple tiers of suppliers, distribution centers, and store locations. This helps companies see relationships, anticipate disruptions, and create contingency plans.\r\n\r\nA digital map of the supply chain<\/a> can also inform the best strategy for getting merchandise where it needs to go by revealing the most efficient and cost-effective combination of distribution centers, stores, and distribution routes.\r\n\r\nOne major US food producer recently discovered the benefits of that approach. As described in a recent WhereNext<\/em> webcast<\/a>, when the company\u2019s GIS team analyzed the supply chain, they uncovered a significant number of mismatched routes. GIS analytics suggested ways to recalibrate the network, and the adjustments improved time to market and saved the company 50,000 gallons of diesel fuel, among other benefits.\r\n

Weathering Changing Consumer Demands \u00a0<\/strong><\/h3>\r\nBusiness executives know well that many factors influence consumer buying behavior, including \u00a0inflation. Location intelligence generated by GIS software shows companies not only where and how spending patterns change, but how new merchandise strategies and supply chain practices combine to satisfy consumer demand."}],"references":null},"yoast_head":"\nAs Inflation Changes Consumer Buying Behavior, Execs Adjust<\/title>\n<meta name=\"description\" content=\"As inflation changes consumer buying behavior, companies adjust the makeup of store shelves and the complexion of supply chains.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/inflation-changes-buying-habits\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inflation\u2014And the Geography of Shopping Habits\" \/>\n<meta property=\"og:description\" content=\"As 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