Purchasing Decisions Amidst Tariffs: A Dilemma Explored
In recent discussions, several organisations have been identified as key players in determining tariffs for certain products, potentially linked to announced product shortages. These include agricultural organisations such as the Vereinigung Bäuerlicher Organisationen (VBO), the Chamber of Commerce, governmental ministries like the Ministry of Interior, Economy, and Environment, and entities involved in economic and labor market analysis in Liechtenstein. Additionally, tariff negotiations involve unions and government representatives, reflecting the economic challenges facing Europe.
However, it's important to note that the majority of products consumers buy today are not affected by tariffs or at risk of shortage. The specific product segments where supply could run low are not yet precisely defined.
Despite potential supply disruptions in certain product categories or items, consumers continue to demonstrate their spending resilience. Retail sales are running at a growth rate of 2% over last year’s levels, indicating a robust market.
In times of need, consumers may choose alternative products as substitutes. This adaptability is crucial, especially considering the ongoing tariff battles do not equate to the broad disruption caused by the global pandemic. The memory of product shortages from the COVID-19 crisis is still fresh in consumers' minds, making it essential for them to be prepared.
According to a related Circana research, the US population of 340 million people is served by approximately 1.8 million retail stores. This translates to a ratio of 79 people per retail outlet. If we consider only stores, that's a ratio of 188 people per store. However, it's important to remember that there are another 2.5 million to 3 million online sites that sell products, providing a vast array of options for consumers.
The research by Circana focuses on retail sales for food and beverage, consumer packaged goods, and general merchandise. Interestingly, female shoppers are reported to be slowing down discretionary purchasing at a faster rate than men.
In the event of a potential product shortage, consumers can consider shopping at multiple stores and online sites to increase their chances of finding the products they need. It may require a little extra searching, but consumers' resilience and adaptability should help them navigate these challenges.
The source for this information is Circana, a respected research organisation. As always, staying informed and prepared is key to managing potential product shortages in the future.
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