Consumer behavior researchers report that the inflationary period of 2021 to 2024 has left lasting behavioral imprints that persist even as inflation moderates. Coupon usage, private label acceptance, and bulk buying have all normalized at higher rates than pre-inflation baselines. Consumers who switched from branded to store-brand products during the inflation peak are significantly less likely to switch back than historical trading-up patterns would predict.
The shift has benefited value retailers while creating headwinds for premium and mid-market brands. Dollar General and Dollar Tree have seen sustained gains in household penetration. Costco membership renewals are at record highs. Traditional supermarkets and department stores are caught in between, unable to match value retailers on price or premium brands on quality perception.
