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Consumer Insights
Shopper Sentiment in a Turbulent Economy - November, 2008
Survey Suggests: Make Tomorrow Black Friday!
Expect this year's shopper to be more functional in her approach to holiday shopping, rather than emotional, by adhering to budgets, minimizing credit purchases, and seeking out sales and promotions. With consumers' intention to spend less this year, along with plans to shop earlier in the season, retailers who respond by getting a jump-start on promotions, and begin their 'Black Friday' sales ahead of schedule, are best positioned to capture the biggest share of holiday dollars.
- More than half of consumers have started, or plan to start, their holiday shopping prior to Thanksgiving this year. Interestingly, families with children are more likely to start their holiday shopping earlier this year.
- Consumers are also planning to cut back on 'dining out for convenience' during their holiday shopping excursions. Specifically, 42% of consumers report they will be dining out less while holiday shopping this year, while only 4% will be dining out more.
For Food Retailers: Providing customers 'mall-meal alternatives' this holiday shopping season, may offer supermarkets a great opportunity. Communicating the value of dining in, as well as tips to making it easy and stress-free, is the key to capturing a greater "share of stomach" this season. Helping your customers 'plan ahead' their meals, or ideas for packing shopping snacks, will enable you to provide 'value' to this year's hectic, and even more pressure-packed shopper.
Consumers are cutting back and expecting retailers to help out
- More than half (54%) of consumers are expecting overall holiday shopping prices to be higher this year versus last year, while only 22% are anticipating lower prices.
- Despite expectations for overall prices to be higher this year, 39% are planning to spend less on holiday purchases this year, while only 16% are planning to spend more.
- Consumers are expecting to achieve their goal to spend less by:
- Planning to cut back on the number of gifts (36%)
- Expecting more sales / promotions this year (34%)
- Planning to spend less on each gift (30%)
- Planning to purchase only what is on sale (26%)
- Items most likely to purchase on sale / with a coupon include: Clothing apparel (50%), DVD's (41%), CD's (37%), Books (36%), Toys (35%)
- When probed "who would be a likely person you would spend less on", half of consumers noted extended family members as a likely place to cut back. Children are the least likely effected, with friends (41%), co-workers (33%), and even spouses/significant others (27%) more likely to get cut, rather than children (18%).
Shoppers choose Gift Cards with ‘good intentions’
- Overall, consumers are planning to purchase gift cards at similar levels compared to last year.
- When marketing to potential gift card shoppers, it is important to understand their intentions behind these purchases, such as:
- Although many shoppers purchase gift cards because "it makes my shopping easier" (38%) and/or "I do not have a gift idea (32%), the majority of shoppers (60%) purchase gift cards so "the recipient can choose what they really want".
- Consumers are nearly twice as likely to purchase a gift card for close family members versus someone that they do not know very well (26% versus 14%, respectively).
- With the increase in availability to purchase gift cards at various retail outlets, the place in which consumers plan to purchase their gift cards is quite diverse. Aside from the expected department stores (39%) and restaurants (23%), consumers report they will purchase their gift cards at:
- Discount Department Stores (39%); including Walmart (22%), Target (14%)
- The Mall (23%)
- Supermarket (19%)
- Drug Store (9%)
Holiday Entertaining:
It appears offering the right product, at the right price, will be even more complex for grocers this season. Understanding yours shoppers' changing needs will be critical in maintaining her loyalty, particularly during this peak-sales season.
- When asked if the recent changes in grocery prices will effect their holiday plans for entertaining, half of all respondents have no plans to alter their entertaining this holiday season.
- Of those that indicated they would cut back, more than half will not host a holiday dinner and/or party this year.
- One-in-five of those intending to cut back plan to choose less expensive cuts of meat/fish for their holiday dinner this year, with a slightly lower percentage (18%) planning to scale back on the dessert menu.
- And on the topic of desserts, consumers are planning to save this season by cutting back on their in-home baking (and perhaps saving some extra calories as well). Although most consumers do not plan to change their baking habits this year, those that will change are more likely to bake less for the holidays this season, versus those planning to bake more (22% versus 10%, respectively).
Providing added-value to your customer-base this season, such as baking recipes and/or bundling key baking ingredients similar to that of a 'meal-deal', are ways to connect with those shoppers seeking to maintain their holiday baking traditions this year.
About this Research:
Consumer Comprehension, LLC conducted an in-depth consumer research study to determine implications of the faltering economy, as it relates to the upcoming 2008 holiday season. This study uncovers consumers' overall buying sentiments, spending habits and holiday entertaining for the holidays. This survey was conducted online, October 14 - October 17, 2008, at the height of the credit crisis and reflects opinions of over 500 primary household shoppers residing in the metropolitan area (New York, New Jersey, Pennsylvania and Connecticut).
Back to School Research - August, 2008
Consumer Comprehension, LLC, has recently completed a compelling Consumer Research study, relating to customer attitudes toward Back-to-School purchases and overall buying sentiment. Following are key insights, or 'lessons', based on nearly 100 in-depth, one-on-one interviews with consumers residing in distinct and diverse geographies. The primary purpose of this research was to ascertain the attitudes behind consumers' shopping behaviors, to best understand current and future implications of these attitudes.
Results:
Whether it's back-to-school supplies, weekly food and groceries, or dining out, consumers are cutting back and spending less. But the real lesson is the one that many consumers are now just realizing themselves: enough is enough; and in some instances, consumers may already feel they have enough.
Lesson Plan # 1: Back-to-School = Back-to-Basics
- More consumers are likely to cut back on clothing apparel / backpacks (44%) versus stationary school supplies (28%), though the real lesson is the undercurrent of consumer attitudes related to these purchases. Consumers today are more likely to view BTS stationary supplies as a necessity, versus BTS clothing/apparel, which was viewed as a luxury.
- Specifically, of those indicating they would spend less on clothing/apparel, three-fourths stated it was a result of ‘having enough already/willing to use last year’s apparel or hand-me-downs’. Only 20% stated they would spend less by seeking sales/clearance items.
Lesson Plan # 3: Understand consumer needs today …
“We have to eat … though try to cut back on the non-necessities, you know, snacks …”
- Interestingly, when respondents were asked if they were altering their food and grocery spending (due to higher fuel and food prices overall), many indicated a willingness to cut back on Snacks and Sweets, in an effort to help maintain their spend on ‘necessities’ (meat/produce/dairy). Although Sweets and Snacks were cited most often, shoppers did indicate they are trying to spend less on some perishables. Again, though, by eliminating more luxurious spending, and sticking to the basics.
- Specifically, shoppers cited they are trying to save in the meat department by either buying less red meat or buying lower cuts of beef.
- In produce, respondents noted stone fruit as having higher prices this year, and with that, were willing to ‘pass this up’ this season.
If you are interested in receiving the full report of findings, or wish to discuss implications of this study specific to your business, contact Consumer Comprehension at (732) 249-4840.
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