2008 Consumer Spending Part 10

They say habits take 21 to 30 days to form. Look at how this will effect spending habits:



Vast Majority of U.S. Consumers Expect to Maintain Frugal Grocery Shopping Habits Even After the Economy Improves

Women More Likely than Men to Stay with Belt-tightening Measures

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 percent 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 percent said they'll continue to cook at home instead of buying take-out meals; 84 percent said they'll keep looking for specials in store flyers; 80 percent said they plan to use coupons as much as possible and 78 percent 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 percent said switching to value brands is a practice they've already followed to cope in a tight economy.

"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 percent, make fewer trips to the store 80-74 percent, shop at low-price stores 68-61 percent, use more coupons 81-78 percent and look for specials in store flyers 84-83 percent. 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 percent 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 percent of women said environmentally friendly products are worth the extra cost, compared to 21 percent of men.

(Source: Precima, 8/21/08)

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