First Insight’s report reveals a significant gap between retail executives’ perceptions and consumer realities amid inflation. Executives are more pessimistic, with 94% believing consumers lack spending confidence, versus 79% of consumers themselves. While 77% of executives think recession worries are high, only 57% of consumers agree. Executives also overestimate consumer cutbacks in categories like apparel, travel, and home goods. This disconnect risks excessive discounting and flawed strategy. Despite this, 60% of executives recognize the importance of predictive analytics and voice of customer tools to better align with actual shopper behavior.

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