Cost-conscious grocery store habits U.S. consumers developed during the faltering economy in the first six months of 2008 are destined to have a long-term impact on national shopping behavior, according to research results issued by retail analytics firm Precima.
A stunning 82% of U.S. consumers in a nationwide survey said they intend to keep cooking at home instead of eating out even after the economy improves and they have more money to spend.
Also, 80% said they’ll continue to cook at home instead of buying take-out meals; 84% said they’ll keep looking for specials in store flyers; 80% said they plan to use coupons as much as possible and 78% said they’re determined to make fewer trips to the store in order to save on gasoline.
The Precima survey asked consumers to identify shopping practices they’ll continue and those they’ll drop if the economy improves. Significantly fewer respondents intend to continue to buy generic or store brands (54%) or continuing to switch from favored brands to value brands (44%). In another provocative result related to brand loyalty, only 32% said switching to value brands is a practice they’ve already followed to cope in a tight economy.
Precima is a member of the LoyaltyOne family of companies (www.loyalty.com). Its shopping habits survey was completed in late-June by ICOM Information & Communications, also a LoyaltyOne company. The online survey results are based on a sample of 2,048 U.S. consumers nationwide.
“Above any other money-saving strategy, consumers use specials in store flyers to determine where they shop. With the majority of consumers trying to make fewer trips to fewer stores, it’s more important than ever for grocers to capture every possible visit,” said Precima General Manager Brian Ross. “Retailers with customer purchasing data from their loyalty programs can really use it to their advantage by picking the right products and providing the right incentives to attract customers to their stores versus competitors,” he said.
“Also, despite the challenging economy, consumers are very reluctant to switch brands to save money. That’s a factor that reinforces grocers’ critical need to understand which brands are most important to their customers,” Ross said. “Retailers who use data from their most important customers to determine new product opportunities, and to identify which brands to promote and which to give the most in-store presence, will have a significant advantage.”
Women are more likely than men to continue the frugal shopping practices they engaged in during the past six months. The comparative numbers are (women vs. men): cook at home 83%-81%, make fewer trips to the store 80%-74%, shop at low-price stores 68%-61%, use more coupons 81%-78% and look for specials in store flyers 84%-83%.
In other key results from Precima’s snapshot of grocery shopping in America:
- Convenience foods like frozen dinners (50%), snacks including chips and cookies (46%) and dessert items such as ice cream and cake (44%) were the top categories consumers said they cut back when budgets are tight;
- 40% of respondents said they cut back on beer, wine and spirits when they have less to spend on groceries;
- Consumers age 21-34 are more likely to cut back on beer, wine and spirits spending (47%) than consumers age 50-59 (37%);
- 32% of women said environmentally friendly products are worth the extra cost, compared to 21% of men.
In other recent research, Precima issued a July 22 release showing that 84% of U.S. consumers in a nationwide survey did not use their federal economic stimulus checks to buy groceries. Precima and ICOM will provide additional in-depth analysis of the latest shopping trends, along with practical strategies to help retailers face challenges presented by consumer responses to the economic downturn, in a free webinar titled Frugal America: How Retailers Can Take Advantage of the Slumping Economy's Lasting Impact on American Shopping Behavior on October 1, 2008 at 1:00 PM EDT. For more information or to register, visit http://www.precima.com/webinar_registration.html
About Precima
Precima is an advanced analytics firm that translates retail customer data into critical insights to better align marketing, merchandising and operations strategies with shopper needs. Precima helps retailers and manufacturers grow sales, improve profitability and build customer loyalty. As the in-house analytics arm of LoyaltyOne (formerly Alliance Data Loyalty Services) Precima worked with many of the leading retail partners of the AIR MILES Reward Program over 16 years to help make the program North America’s coalition loyalty marketing leader. Additionally, Precima has worked with numerous customer-focused retailers and manufacturers across North America. Precima is recognized for delivering measurable results tailored to each retailer’s unique needs. For more information visit www.precima.com.
About ICOM
ICOM Information & Communications L.P. is a full-service provider of targeted list, data communication solutions and analytic services for the consumer packaged goods (CPG), over-the-counter (OTC), pharmaceutical, market research and auto industries in North America, as well as the direct response sector in Canada. Recognized as a leader in targeted marketing solutions designed to enhance integrated marketing initiatives and drive return on investment, ICOM manages the largest permission-based direct response survey database in North America, providing its clients with superior customer insight and marketing results. ICOM is a member of the LoyaltyOne family of companies. Visit ICOM at www.i-com.com
About LoyaltyOne, Inc.
LoyaltyOne is a global leader in the development and management of loyalty marketing strategies that profitably change customer behavior. Through a team of businesses, each specializing in a distinct loyalty discipline, LoyaltyOne designs, delivers and manages a complete suite of loyalty marketing capabilities. The companies include: LoyaltyOne Consulting, a group of practitioners with more than 25 years of experience designing and implementing customer strategies for Fortune 1000 clients; The AIR MILES® Reward Program, North America’s premier coalition loyalty program; COLLOQUY® and colloquy.com, global provider of loyalty marketing publishing, education and research since 1990; ICOM Information & Communications L.P.; North America’s leading supplier of targeted list, data communication solutions; Direct Antidote, a loyalty agency specializing in data-driven creative campaigns designed to deliver measurable results that inspire customer loyalty and return on investment; and Precima, an advanced analytics firm that translates retail customer data into critical insights to better align marketing, merchandising and operations with shopper needs. LoyaltyOne is a wholly owned subsidiary of Alliance Data Systems Corporation (NYSE:ADS). More information is available at www.loyalty.com (http://www.loyalty.com).
Contacts:
Tim Sansbury, 513-231-5115
tim@jzmcbride.com
or
Will
Sikes, 513-231-5115
will@jzmcbride.com
