Cost-of-living crisis weighs on consumer spending

Last update – June 2023
Business environment risk
Political risk
Commercial risk
  • Resilient labor markets in advanced economies
  • Still elevated savings buffers in advanced economies
  • Policies supporting the purchasing power of households for staple goods
  • “Modern retail” still has a lot of room for expansion in emerging markets
  • E-commerce can be a growth catalyzer in emerging markets
  • Changing consumer habits are an opportunity
  • Expertise of established players on supply-chain issues
  • Record-high inflation denting households' purchasing power
  • Strong price competition and overall limited room for differentiation for food retailers
  • Cut-throat competition between online and incumbent discretionary retailers
  • In the face of growing e-commerce penetration, adaptation to new business models proves very challenging for incumbent retailers
Aurelien Duthoit
Allianz Trade