Consumers starting to have 'sticker shock,' retail expert says
Burt Flickinger is seeing a 'real shift in consumer behavior'
Consumers buying 'needs,' not wants, amid fuel shortage: Retail expert
Strategic Resource Group managing director Burt Flickinger argues the Colonial Pipeline fuel shortage is shifting consumer behavior.
Strategic Resource Group managing director Burt Flickinger joined "Mornings with Maria" Friday to weigh in on the rise in retail sales. Flickinger argued that the rise in gas and grocery prices is shifting consumer behavior to spend less on discretionary purchases.
BURT FLICKINGER: Energy prices, as you've reported, are well over a dollar a gallon, food for restaurants up nearly 4%, where food at home is only up about 1%…
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Restaurants will really fail in this environment to bounce back well because of a labor shortage, rising input costs…
For food-anchored shopping centers and shopping malls, anchored by Costco, BJ's, Target, Wal-Mart and the leading supermarket chains, those malls and those retailers will do well, but consumers are starting to have sticker shock…
RETAIL SALES FLAT AS STIMULUS BOOST COOLS
People are even shifting from hotels to save more from Airbnb, all the way to the local supermarket, rather than going to the higher-priced restaurant forced up by high costs…
Consumers are buying for need, and with these price increases you're referencing, from fuel to food and all 11 monthly consumer expenditure is going up as a result of consumers not buying for want.
So discretionary purchases will be mitigated and people will just be buying for household essentials. So you're right, real shift in consumer behavior.
CLICK HERE TO WATCH THE FULL INTERVIEW