Paper towels that had been shrinkflated accounted for 38.6% of total revenues in their category, according to a recent study by the US Government Accountability Office (GAO) for the period of 2021 through 2023. Boxes of cereal that had been shrinkflated, meanwhile, accounted for 8.6% of total revenue in their category during the same period, according to the study, which relied on NielsenIQ retail scanner data.

However, the number of products that are subject to shrinkflation—the term for products being downsized, often imperceptibly, without lowering the price—is significantly smaller, reflecting that the practice is more common for popular products. With paper towels, only 3% of items across the category were shrinkflated yet accounted for that 38.6% category share; for cereal, it was just 1.1% of shrinkflated items that commanded that 8.6% share.

The study—a 63-page doorstop prepared for a subcommittee of the Senate’s Committee on Health, Education, Labor and Pensions—also examined four other categories: toilet paper (where shrinkflated products accounted for 11.6% of sales in the category), coffee (about 7% of sales), laundry detergent (about 3%), and over-the-counter pain relievers (about 1%).

Big little buys: For consumers who’ve taken to social media to express their outrage when they discover instances of shrinkflation, this aspect of the report will come as bad news: The strategy seems to be working for brands like a lucky charm.

Keep reading here.—AAN

Holiday spending is set to decline 5% from 2024 in “the first notable drop since 2020,” according to a new study from PricewaterhouseCoopers.

The outlook predicts a more chaotic holiday season in general, as rising prices and a higher cost of living disrupt the usual patterns.

“Holiday shopping typically plays out like a well-rehearsed melody — steady rhythms, familiar refrains,” the accounting firm wrote. “But this year, it feels more like jazz: improvisational and less predictable, with shifting consumer behavior, smarter spending and a younger generation leading the key change.”

The report found that Gen Z shoppers will be the biggest contributors to the decline, reducing their holiday budgets by 23%, while millennials, baby boomers, and Gen X plan to maintain or increase their spending this year.

PwC said the key takeaway for retailers is “look beyond price cuts—and to understand how life stage, values, and emotions drive spending.”

Keep reading here.—AV

High prices, low quality, and general distrust are not the only things putting off consumers from shopping at a brand. According to a new survey by Clutch, slow websites are a big turn-off for many shoppers.

• 52% consumers actually leave the website if it takes more than 10 seconds to load—yikes!
• Only 29% of those surveyed said they’d wait between 5 and 10 seconds for the page to load before abandoning it.

The findings reveal that the average customer today values efficiency and may not be tolerant of web design slipups.

• In fact, 84% of respondents said that web design definitely factored into their decision to shop with a brand.
• Meanwhile, 80% of shoppers would actually leave the website altogether due to poor design even if they were interested in a product.

Keep reading here.—JS

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