Economic & political uncertainty: Reshaping spending habits

The anxious consumer: Reshaping purchasing decisions

Economic and political uncertainty in a world in flux is fundamentally impacting consumer confidence and spending. This environment cultivates a more deliberate, risk-averse shopper, leading to delayed purchase decisions. Brands and retailers must recognize this profound shift in consumer psychology.

To succeed, they need to pivot towards values of security and inclusivity. This means moving beyond traditional aspirational messaging to genuinely address the underlying anxieties of their target audience and align with their evolving priorities and interests.

Understanding a series of key questions will offer a strong starting point for shaping your strategy in this area…

Download The Future Shopper 2025

Economic and political instability is reshaping consumer behavior in profound ways. According to The Future Shopper 2025, cost of living (32%) and inflation (13%) are the top financial stressors globally, driving shoppers to prioritize value, practicality, and transparency in every purchase. Political volatility compounds this caution:

66% of consumers say political events make them anxious about their financial future.
60% are more nervous about making major purchases.
58% are saving more as a precaution.

This climate has shifted spending patterns toward delayed big-ticket purchases, increased savings rates, and a preference for brands that align with personal values – with 47% now choosing companies based on political or social alignment.

In short, uncertainty is pushing consumers toward risk-free, values-aligned, and price-justified purchases. Brands must address both the rational (value, security) and emotional (trust, alignment) sides of the decision-making process.

Risk aversion is manifesting in several clear trends:

Purchase postponement – Over half (55%) are delaying major life decisions; 60% are hesitating on big purchases.
Savings over spending – 58% are actively saving more due to political and economic uncertainty.
Localism and protectionism – 57% expect to spend more on locally made products; 52% would pay more for goods made in their own country.
Value-first mindset – Price sensitivity is heightened, but not at the expense of quality or trust.
Ethical alignment – 59% are more likely to buy from companies that speak positively about diversity and social issues.

Risk-averse shoppers are more selective, research-driven, and brand-conscious. They are less impulsive and more likely to reward brands that provide clear value, reassurance, and ethical alignment.

To address heightened caution and delayed spending, brands should:

Lead with reassurance through empathetic, human-first messaging that acknowledges consumer anxieties.
Highlight value beyond price with bundled offers, extended warranties, and emphasis on durability.
Offer flexible payment options such as BNPL, interest-free credit, and subscription models to reduce purchase friction.
Promote local and ethical sourcing with transparent supply chains to build trust.
Leverage rich product content, reviews, and AI-powered comparison tools to shorten decision cycles.

In times of uncertainty, certainty sells — predictable pricing, clear return policies, and consistent product availability are key conversion drivers.

The retail outlook for 2025 is cautiously optimistic but highly segmented. In the short term, discretionary categories are likely to see slower growth, while essentials, value retail, and private labels will outperform. Mid-term stability will depend on inflation control, interest rate movements, and political stability in key markets.

Industry analysts forecast that global retail sales growth will hover between 2–4% in 2025, with emerging markets such as India, Brazil, and parts of Southeast Asia driving much of the expansion. Developed markets like the US and Western Europe are expected to see flat to modest growth, with ecommerce penetration stabilizing after pandemic-era surges.

Key trends shaping the outlook:

Omnichannel integration will remain a growth driver, with physical retail playing a stronger role in brand engagement and fulfilment.
Marketplaces will continue to dominate online share, but brands will invest more in direct-to-consumer channels to build loyalty and reduce dependency.
AI and automation will accelerate operational efficiency, personalization, and supply chain resilience.
Experiential retail will grow as brands use physical spaces to create immersive, loyalty-building experiences.

Overall, the winners will be those who can adapt quickly, blend physical and digital seamlessly, and meet heightened consumer expectations for both value and values.

Trust-building in 2025 requires a multi-layered approach:

Transparency in pricing, product descriptions, and policies.
Consistency in stock levels, delivery times, and service quality.
Authentic values alignment, with clear stances on social and environmental issues that resonate with the target audience.
Risk reduction through free returns, satisfaction guarantees, and flexible payment terms.
Human-centric communication that uses empathetic tone and customer-first storytelling to show understanding of the shopper’s reality.

With 62% of shoppers preferring brands with both physical and online stores, omnichannel presence itself is a trust signal.

At a Glance

60%

of consumers globally are nervous about making major purchase decisions due to economic and political uncertainty.

At a Glance

32%

the percentage of consumers whose biggest financial concern is the cost-of-living increase (making it the #1 concern factor).

At a Glance

47%

now claim to have changed their shopping habits to favor companies that align with their political views.

Read the full report to understand:

The current shopper trends and consumer behaviors driven by risk aversion and hesitation.
How economic and political uncertainties are reshaping consumer spending and shopping habits.
The current key financial stress factors for today’s consumer.
How can brands and retailers adapt their strategies to address evolving consumer psychology and purchase delays.
How businesses can build consumer trust and provide reassurance to cautious shoppers in uncertain times.

The role of economic and political uncertainty for the modern shopper is just one of the crucial themes we investigate in our new report which covers insights and recommended actions spanning the end-to-end shopper journey. Click for all ten themes to champion the e-commerce and hybrid retail challenge, through unified customers journeys and touch points, frictionless shopping, integrated channels, meaningful innovation and connected commerce.