85% of Americans think brands are using inflation as an excuse to overcharge - and it's costing them customers

Why this matters

The finding that a majority of Americans perceive brands as exploiting inflation to justify price hikes—and that over half have curtailed spending on formerly preferred products—signals a notable shift in consumer behavior with implications for retail real estate. For institutional investors, this underscores mounting pressure on retail tenants’ sales volumes and margins amid persistent cost inflation and “shrinkflation.” Reduced consumer loyalty and heightened price sensitivity may accelerate tenant turnover and compress retail rents, particularly in grocery-anchored centers where foot traffic is critical. The trend also suggests that retailers may increasingly prioritize short-term financial adjustments over long-term brand equity, potentially undermining the stability of retail cash flows that underpin CRE valuations. From a capital-markets perspective, lenders and equity providers should anticipate greater volatility in retail income streams, prompting more conservative underwriting and heightened scrutiny of tenant creditworthiness. This dynamic could reinforce the bifurcation between retail formats—favoring necessity-based and discount-oriented concepts over discretionary or premium brands. Ultimately, the consumer backlash against inflation-driven pricing strategies may complicate retail landlords’ efforts to maintain occupancy and income growth, influencing portfolio positioning and risk assessments in a still-challenging operating environment.

Editorial analysis · AI-assisted

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