Perception vs. Reality

Sometimes it’s not about whether a price it high or low; it’s a shopper’s perception of changes in price that can make all the difference.

A recent edition of WSL Strategic Retail’s Pulse newsletter explored shoppers’ current price perceptions and suggests that opportunity may be knocking for retailers and manufacturers if they can convince shoppers that prices are beginning to come down. When shoppers perceive prices to be declining, 59 percent stock up on lower-priced items.

The Pulse survey indicates that less than 12 percent of shoppers think prices are “down.” In fact, two-thirds believe prices on groceries are up, and 40 percent to 50 percent think prices are up on health and beauty categories.

But shoppers are clear on one thing: when prices begin to fall, they’re ready to stock up and spend more. That’s a very different mindset from a year ago, when shoppers chose to pay off bills or save more. Could this be the recession recovery indicator retailers have been waiting for?