The Choices Your Customers are Making

They're not just deciding between you and your competitor, they're often looking at the big picture and deciding how they want to spend all of their money:

Shoppers' Untouchables: What Consumers Won't Live Without

While the economy is forcing many consumers to make sacrifices in order to save a few bucks, a handful of must-have's remain on the list.

A recent survey conducted by BIGresearch featured exclusively in this month's issue of STORES magazine found that Americans have redefined what's "untouchable" and what is "expendable" in their lives to adjust to the current economic climate.

According to the survey, an overwhelming majority believe that Internet (80.9 percent) and basic cellphone service (64.1 percent) are simply off limits. Shoppers also said that basic cable/satellite television (60.5 percent), discount shopping for apparel (43.0 percent), hair cuts and colors (40.0 percent), eating at fast-food restaurants (36.6 percent), dining at casual sit-down restaurants (32.5 percent), charitable contributions (32.4 percent), vacations (29.7 percent), and a new pair of shoes (24.0 percent) were on their list of untouchables.

"The current economy has forced many Americans to find new ways to live and even shop," said Susan Reda, Executive Editor of STORES magazine. "However, many consumers can't imagine life without the Internet, text messaging, and basic cable."

While some items remain off-limits, Americans have been scaling back, with popular indulgences like facials and fine dining taking a back seat while people try to save money. According to the survey, 92.2 percent of consumers believe luxury handbags are expendable, followed by satellite Radio (90.9 percent), specialty shopping for apparel (90.7 percent), high-end cosmetics (90.7 percent), maid service (90.0 percent) and facials (89.8 percent).

Despite common themes, differences exist among ages and genders in what people will and will not cut out of their budgets. For example, more women (70.0 percent) find cell phone service untouchable than men (57.8 percent), but more men find fine dining untouchable than women (12.3 percent vs. 9.1 percent). The survey also found that men (21.5 percent) seem to appreciate a new pair of jeans more than women (18.9 percent). Additionally, more 18-34-year-olds find hair cuts or colorings expendable (69.9 percent) than 35-54-year-olds (57.8 percent), though both age groups agree they cannot live without the use of their cellphone (64.8 percent of 18-34-year-olds vs. 64.4 percent of 35-54-year-olds).

"Today's economy has had an impact on every American, and retailers are dealing with very different shoppers than they were one year ago," said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. "While many people have opted to trade down, some refuse to sacrifice certain luxuries, cutting items they feel are expendable to compensate."

(Source: National Retail Federation, 02/02/09)

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