Speaking at the recent National Retail Federation show in New York, Target CEO Brian Cornell predicted that in the coming months Americans will be buying more store brands as they seek ways to fight inflation. In his keynote, he forecast shoppers will drive less and make fewer shopping trips this year due to rising gas prices and other inflationary pressures.
"You’ll drive fewer miles, you’ll consolidate the number of times and locations where you shop," Cornell said. "You’ll probably spend a little more eating at home versus your favorite restaurant, and you might make some trade-offs between a national brand and an own brand."
"We're going to learn a lot about how the consumer reacts in the next 60, 90, 120 days to rising prices," Cornell added.
Despite the pandemic and economic pressures, he pointed out that shoppers still want the retail store experience. “They came out to shop. They were out physically shopping in our stores. They returned to shopping malls. They were engaged. They wanted to be out there enjoying what retail can provide. It gives me incredible optimism for the future.”