Grocery Shopper Behavior
Q3 2009
- Quarterly evaluation of shopper behavior today- Changing shopper in the face of economic stress
November 2009
About Our Presenters
1
Jane Mount is the Executive Vice President of Digital Research, Inc. (DRI), a New England based
marketing research firm that focuses on new media research techniques for various Fortune 500
organizations.
Prior to joining DRI in 2000, Jane held research director positions with Nabisco Brands/The LifeSavers
Company, Philips Lighting Co., and Hannaford Bros. Co. Much of her work over the years has focused on
category management/sales research, advertising development and new product development.
Jane holds a B.S from Lehigh University and a MBA from Seton Hall University. She has been an active
member of the Marketing Research Association (MRA), serving on the professional certification review
committee. Jane was trained in focus group moderating at the RIVA Institute.
Debra Patek is Chief Economist & Cofounder of ThinkVine Corporation, a venture backed marketing
science solutions company based in Cincinnati, Ohio. Debra brings nearly 20 years of experience in the
areas of pricing research, economic analysis and consumer behavior modeling.
Prior to joining ThinkVine, Debra was a Director of Analytics at marchFIRST and a pricing strategist at the
L.M. Berry Company, a division of BellSouth. She has an M.A. in Economics from the University of
Cincinnati and taught undergraduate economics at the University of Cincinnati and Earlham College.
Debra has is a faculty member of the Professional Pricing Society and a member of the National
Association of Business Economists.
4
What is Happening to Consumers’ Relationships with Brands?
5
What is the New Norm?
6
Objective
• The purpose of this study is continue to ascertain the current
economic mood of consumers and how the economy is affecting
grocery shopper behavior in the United States
– What behaviors have surfaced?
– What categories have been most affected?
– What is anticipated for the future?
– What are the expectations for holiday season?
• It also continues to track our new American grocery shopper
segmentation
• This is our second quarterly wave
METHODOLOGY
7
8
Methodology
• An online survey was conducted between October 20th and October 22nd,
2009 among 1,021 grocery shoppers.
– Nationally representative sample drawn from EMI Surveys Panel
– Questionnaire designed by Thinkvine and DRI
– Survey programmed and hosted by DRI
– Segmentation/advanced analytics by Thinkvine
• Seventeen grocery categories analyzed
– Milk, paper towels, bread, cookies, crackers, rte cereal, orange juice, salty snacks, juice beverages, pasta sauce, yogurt, laundry detergent, soft drinks, salad dressing, pet food, coffee, and OTC pharmaceuticals
• Cluster analysis identified six distinct segments of shoppers based on
economic impact, lifestyle changes and shopping behaviors
• Quarter 3 data weighted by age, income, and region for comparability with Q2
OVERALL FINDINGS
9
10
The Economic Climate is Viewed as Relatively Weak, but Perceptions are Improving
Q4. What is your perception of today’s economic climate? 100-pt scale
12%
2%
37%
48%
"Great"
"Good"
"Fair"
"Poor"
N=1021
% Poor Q2 Q3
18 – 34 42 23
35 – 49 50 36
50 – 64 53 47
Improvement driven by younger
consumers
“D-”49% Q2
43% Q2
6% Q2
11Q22. In the past six months, has anyone in your household been affected by any of the
following? Please check all that apply.
Affects of Economy
27%
3%
5%
6%
11%
12%
14%
17%
22%
27%
27%
35%
36%
None of these
Other financial issues
Difficulty selling a house
Home foreclosure/mtg issue
Serious illness
Difficult access to credit
Financial support to family or friends impacted by economy
Investment losses
Job loss/unemployment
Job uncertainty
Credit Card Debt
Difficulty in paying bills
Income reductions
¾ of Shoppers Claim to be Negatively Impacted by Today's Economy; Hardships Remain Largely the Same as in Q2
N=1021
Fewer experiencing
investment losses now
(17% vs. 23% Q2)
Age 50-64 Q2 Q3
Income
reductions31 40
Financial
support to
family
12 17
Older shoppers facing income
reductions while helping out others
12
30%39% 42%
12%
38%
44% 38%
40%
22%
12% 15%
15%
29%
34%
30%
13%5%5%
10%
26%
2 Years Ago 1 Year Ago 6 Months Ago Today 6 Months From
Now
Great
Good
Fair
Poor
N=1021
Q4a. If “100” represents your economic well-being during “normal times” (i.e. average for the
past few years), how would you rate your economic well-being for the following time periods?
Q4b. What do you expect your well-being to be six months from now?
Many Shoppers View Their Current Economic Situation Negatively; Yet Are More Optimistic for the Future
13
In This Downturn 91% Have Made Changes to Stretch Their Dollars
Q5. In recent months, have you changed your lifestyle at all to stretch your dollars more?
35%
41%
9%
15%
Yes, I've made
substantial changes
Yes, I've made some
changes
Yes, I've made minor
changes
No, I have not changed
my lifestyle
N=1021
91%
50+ have adapted most
(38% vs. 29% 18-34)
14
Shoppers Are Not Just Reducing Discretionary Spending, But Also Essentials
Q6. In what areas have you made changes?
36%
41%
65%
79%
81%
81%
55%
48%
Healthcare expenditures
Home maintenance
Charitable giving
Large expenditures
Vacations
Clothing
Small cutbacks to
everday expenditures
Entertainment
expenditures
But concentrated on entertainment, clothing, and the everyday
N = 932 Made Changes
Q2 Q3
Clothing 71% 79%
Vacations 60% 65%
Charitable Giving 42% 48%
Healthcare 29% 36%
More shoppers making cuts in
several traditional Holiday/Winter
categories:
1515
A Return to Higher Levels of Spending is Not Anticipated Through Q1 2010
Q7. Do you anticipate making additional cutbacks in the next six months?
45%
51%
4%
Yes, I expect to make
addit io nal cutbacks
N o , I expect to be spending
abo ut the same
N o , I expect to increase my
spending
N = 1021
16
Maybe a Little Loosening, but Shoppers Are Not Planning to Resume Their Old Spending Habits
Q8. Once the economy improves, do you anticipate that you will continue to use the saving
strategies you are implementing to weather this tough economy or will you return to your previous
spending habits?
49%46%
4%1%
I w ill continue to use my
saving strategies
I w ill spend a little more,
but try to be more
conservative than before
I w ill return to my
previous spending habits
Don’t know
N = 932 Made Changes
Willingness to spend a
little more has increased
(46% vs. 41% Q2)
17Q19. In what ways, if at all, have your grocery shopping habits changed during this economic
downturn? Please check all that apply.
As in Q2, Shoppers Buy Needed Essentials –On Sale/With Coupons or Thru Trading Down
N = 1021
57%
52%
50%
46%
44%
40%
37%
36%
36%
59%
Trade down to lower priced national brands
Take advantage of rewards cards/programs
Rely on weekly circulars to decide where to shop
Buying fewer convenience foods
Trade down to store brands
Make fewer trips to the grocery store
I reduced impulse purchases
I use more coupons/ promotions
I stock up on sale items
I reduced spending on non-essential items
More trading down to
lower priced national
brands now
(36% vs. 30% in Q2)
18Q19. In what ways, if at all, have your grocery shopping habits changed during this economic
downturn? Please check all that apply.
N = 1021
26%
26%
25%
24%
22%
22%
20%
16%
13%Shop at Whse clubs more
Buy less fruits/ vegetables
Switched to a lower priced store
Shop at a closer store to save gas
Shopping in more stores to get the best deals
Buy cheaper cuts of meat
Use the Internet to research products, prices, and find coupons
Buy bulk sizes to get more value for the money
Shop at Dollar Stores more often
In Q3, Fewer Warehouse Clubs or Shopping Around – More Cheap Meat
20% Q2
26% Q2
19% Q2
19
Similar to Q2, Nearly Half of Shoppers Report Spending Less on Groceries This Year
Same
42%
More
12%
Less
46%
Q10. Is this about the same, more or less than you spent at this time last year?
Avg. spending per week
$102 - a 6% decline
since Q2
Focused on lower income/lower spenders
20Q14. How important is it for you to get the absolute lowest prices when you are grocery shopping?
40%38%
1%2%
20%
5 - Extremely
Important
4 3 2 1 - Not at all important
Absolute Lowest Prices Continue to be a Requirement for Today’s Shopper
Importance of Absolute Lowest Prices
N = 1021
77%
21
Q15. Sometimes in order to get the lowest prices, you have to make some changes to how you shop. Please allocate 100 points across
these attributes based on how likely you would be to make these changes. Note: asked among those desiring absolute lowest prices.
N = 988
…Coupons/Specials and Trading Down Brands (to Store and Lower Cost National) Are Key to Getting The Absolute Lowest Prices
0.6
1.0
1.2
1.4
1.6
2.0
2.0
2.9
3.3
4.8
6.2
6.6
7.5
8.1
11.2
11.3
12.1
16.4
Store has poor reputation
Poor customer service
Shop at unclean store
General poor selection
Poor selection of natural/organic
Slow checkout
Shop at a crowded store
Choose avg quality meat/produce over highest
Drive to store that is not the closest
Drive to multiple stores to get best deals
Browse Internet coupons
Bag own groceries
Compare store flyers
Switch to lower cost brand
Shop at a store w/better weekly specials
Switch to store brand
Buy only sale items
Clip coupons
(8.7 in Q2)
(6.0 in Q2)
(0.6 in Q2)
In Q3, shoppers are less likely to
compare flyers and drive to multiple
stores to get deals. In fact, they are
more likely to shop at an unclean store
to get the lowest prices.
22
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of each of these categories? Response
options: I have made no changes, I only buy my preferred brand with a sale or coupon, I buy a different size of my preferred brand, I buy a lower priced national brand, I buy generics or store
brands, I buy my preferred brand in a lower cost store
64%
45%
49%
49%
50%
53%
54%
54%
55%
56%
56%
57%
57%
57%
58%
59%
61%
Pet Products
Coffee
Milk
Carbonated soft drinks/soda
Bread
Orange Juice
Pasta Sauce
Yogurt
Laundry Detergent
Ready to Eat Cereal
Salad Dressing
Juice Beverages
Crackers
Salty Snacks
Cookies
OTC Pharmaceuticals*
Paper Towels
All Categories Impacted by Changes in Purchasing Behavior with Household Staples Being Targeted Since Q2 (Milk, Bread, OJ, Laundry Detergent)
Percent Who Made Changes
12 pts
10 pts
6 pts
7 pts
5 pts
12 pts
9 pts
5 pts
6 pts
23
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of each of these categories? Response
options: I have made no changes, I only buy my preferred brand with a sale or coupon, I buy a different size of my preferred brand, I buy a lower priced national brand, I buy generics or store
brands, I buy my preferred brand in a lower cost store
12%
10%
33%
13%
29%
18%
16%
14%
15%
17%
19%
16%
24%
21%
21%
41%
32%
12%
21%
5%
20%
8%
18%
17%
25%
20%
24%
20%
19%
16%
17%
18%
8%
15%
10%
9%
6%
7%
8%
10%
15%
10%
13%
8%
12%
12%
9%
10%
11%
6%
9%
5%
4%
2%
5%
4%
4%
3%
4%
4%
3%
3%
5%
4%
5%
4%
3%
4%
6%
5%
3%
5%
4%
4%
3%
2%
4%
4%
3%
5%
4%
5%
5%
3%
4%
Pet Products
Coffee
Milk
Carbonated soft drinks/soda
Bread
Orange Juice
Pasta Sauce
Yogurt
Laundry Detergent
Ready to Eat Cereal
Salad Dressing
Juice Beverages
Crackers
Salty Snacks
Cookies
OTC Pharmaceuticals*
Paper Towels
Switch to store brand Preferred brand with sale/coupon Lower priced national brand
Different size of preferred brand Preferred brand from lower cost store
Purchasing Changes Focused on Switch to Store Brands and Purchasing Branded Items on Sale
Changes Made
24
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of each of these categories? Response
options: I have made no changes, I only buy my preferred brand with a sale or coupon, I buy a different size of my preferred brand, I buy a lower priced national brand, I buy generics or store
brands, I buy my preferred brand in a lower cost store
33%
32%
29%
24%
21%
21%
19%
18%
17%
16%
16%
15%
14%
13%
12%
10%
41%
Coffee
Pet Products
Carbonated soft drinks/soda
Yogurt
Laundry Detergent
Pasta Sauce
Juice Beverages
Ready to Eat Cereal
Orange Juice
Salad Dressing
Salty Snacks
Cookies
Crackers
Bread
Paper Towels
Milk
OTC Pharmaceuticals*
National Brand Abandonment Has Increased Significantly in Most Categories Since Q2 as a Solution to Budgetary Crunches
Percent Who Purchase Generic or Store Brands
14 pts
15 pts
17 pts
12 pts
11 pts
7 pts
6 pts
10 pts
7 pts
7 pts
6 pts
5 pts
5 pts
5 pts
25
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of
each of these categories?
In Q2, Changes Focused on Buying Preferred Brands With Promotions; In Q3, Fewer Are Holding Out for a Good Price on a Favorite Brand
Percent Who Only Buy Preferred Brand with a
Sale/Coupon
25%
5%
8%
8%
12%
15%
16%
17%
17%
18%
18%
19%
20%
20%
20%
21%
24%
Milk
OTC Pharmaceuticals*
Bread
Pet Products
Paper Towels
Crackers
Salty Snacks
Pasta Sauce
Orange Juice
Cookies
Juice Beverages
Salad Dressing
Laundry Detergent
Carbonated soft drinks/soda
Coffee
Ready to Eat Cereal
Yogurt
9 pts
8 pts
10 pts
7 pts
7 pts
4 pts
4 pts
3 pts
26
Comment per Waggle Market Research Online Community. Q2 respondents participated as members of the
community following Q2 field.
Value, Availability and Improved Quality Driving National Brand Abandonment
“I buy more store brands now than I ever did since the recession
started, and I prefer them more now as they are comparable or better than the national brands...I think the quality and price are good, so I will continue to purchase store brands after the recession as well. This I won't change - my philosophy is ‘Why spend more if you don't have to?’”
27
29%
17% 17%
10%7%
5%2% 2% 1%
17%
31%
36%
47%
38%
33%
12% 12%
33%
11%12%
27%
22%
9%
30%
Dolla
r st
ores
Mas
s mer
chand
isers
Onlin
e Ret
aile
rs
Farm
er's m
arke
ts
Flea
mark
ets
Ware
house c
lubs
Super
mark
ets
Dru
g sto
res
Conven
ience
sto
res
Depar
tmen
t sto
res
Boutiq
ue st
ores
Upsca
le d
epar
tmen
t sto
res
Shop More Shop Less
N=1021
Q8a. Comparing your shopping habits to before the start of this economic downturn, would you say you are shopping
more, less, or about the same at each of the following types of stores?
30% Shopping Supermarkets Less; Dollar Stores and Mass Merchandisers Seeing More Activity
28
25%
13%
6% 6%
28%27%
6%
32%
13%
21%
Cash Debit cards Credit cards Prepaid credit cards Checks
More Frequently Less Frequently
N=1021
Q8b. Think about the payment methods you use for your general purchases – such as cash, credit cards, or debit
cards. Would you say you are using each of these methods more frequently, less frequently, or about the same as
before the economic downturn?
Shoppers Relying on Cash/Debit; Utilizing Credit Less
29
59%
38%
19%13%
3%
67%
Cash Debit cards Credit cards Check Food
stamps/WIC
Prepaid credit
cards
* Small sample size. Interpret with caution.
Q20a. What methods have you used over the past year to pay for grocery purchases?
Q20b. Are you using this method more frequently, less frequently, or about the same amount as you did a year ago?
Groceries Most Often Paid for in Cash/Debit; No Change in Credit Card Use Since Last Year
Grocery Payment Methods in Past Year
37%
26%
19%21%
11%
26%
34%
11%14%
56% 54%
29%
Cash Debit cards Credit cards Check Food stamps/WIC Prepaid credit
cards*
More Frequently Less Frequently
Grocery Payment Method: Change in Use(Among Users of each payment method)
30
N=1021
Q21b. Now please think about your total purchases for the upcoming holiday season, and how much you anticipate
spending in each of the following categories. For each category, please indicate how much you will likely spend
compared to last year’s holiday season on a scale of 1 to 5 where 1 = “Spend much less” and 5 = “Spend much more.”
16%
23%
29%
29%
31%
32%
32%
34%
34%
35%
37%
39%
40%
41%
45%
Groceries for holiday celebrations
Gift cards/gift certificates
Books
Toys
Video games
Sporting goods
Event tickets
Music
Computer hardware/software
Comsumer electronics
DVDs/videos
Jewelry
Apparel and accessories
Flowers/cards
Eating out/dining
For the Holiday Season, Shoppers Plan to Spend Less in All Categories, Particularly Eating out, Apparel, and Flowers/Cards
Net Decline in Purchasing (% less minus % more)
31
Shoppers This Year Plan to Either Maintain or Decrease their Online Spending
Q21c. Now please think specifically about your online holiday purchases. Compared with the
total amount you spent online during the holiday season last year, how much do you estimate the
total amount you spend this year online will change?
7%
13%
22%
16%
41%
Will spend much
more online this
season
Will spend a little
more online this
season
Will spend about the
same this season
Will spend a little
less online this
season
Will spend much
less online this
season
N=1021
20%
39%
NEW SHOPPER SEGMENTS
32
33
Who is the “New Shopper?”
Economic Impact: the economic downturn has impacted different
people in different ways.
Some people are only mildly impacted
Others experience substantial hardship
Shopping Response: different shoppers have reacted in different
ways to current economic conditions.
Some shoppers are more active or aggressive in the response
to economic conditions
Yet, others show a more passive or restrained response
The first wave of the Grocery Study introduced a New Shopper
Segmentation, which categorized shoppers by economic impact and
shopper response
34
Reintroducing the Six Segments
Segment Economic Impact Shopping Response
Unfazed Mild Nonplussed
Cautious Comfort * Mild Cautious
Optimizer Moderate Strategic
Modest Means Moderate Restrained (or Resigned)
Hard Times Severe Hardship Struggling
Nouveau Poor Dramatic Reversal Floundering
Along these two dimensions, cluster analysis uncovered six key
segments
* known as Cautious Success in wave I
35
The % of Unfazed remains largely unchanged, with modest shifts observed in other segments
Segment Composition
Q2 Q3
Unfazed8.3% 8.7%
Cautious Comfort 25.6% 23.3%
Optimizer12.2% 14.3%
Modest Means28.2% 30.5%
Hard Times21.1% 16.7%
Nouveau Poor **4.6% 6.5%
Segment Memberships
Modest
Means
30.5%
Optimizer
14.3%
Unfazed
8.7%NP 6.5%
Hard Times
16.7%
Cautious
Comfort
23.3%
** Although Nouveau Poor has a small sample size (n=67), its differences from other segments
are large enough to warrant its own segment. As the current economic “shock” begins to
subside, Nouveau Poor may fold back into other segments.
“Unfazed”
Passive response to economic conditions
“Cautious Comfort”
Doing well, but keeping an eye on
excessive spending
“Optimizer”
Strategically balances brand, convenience &
quality with affordability
“Modest Means”
Tightening of the belt for an already
beleaguered shopper
“Hard Times”
Struggling to make ends meet under
dire economic conditions
“Nouveau” Poor
Lifestyle upheaval after a dramatic
reversal of fortune
Passive
Le
ss
Dis
tre
ss
ed
Mo
re
Dis
tre
ss
ed
Lifestyle
Response
Inte
nsit
y o
f
Hard
sh
ip
Active
36
% households Impacted
(last six months)Unfazed
Cautious
ComfortOptimizer
Modest
Means
Hard
Times
Nouveau
Poor
Income reduction 4.8% 24.4% 29.7% 42.7% 51.0% 61.0%
Job loss / unemployment 4.2% 14.8% 19.3% 28.7% 27.5% 39.4%
Job uncertainty 2.7% 21.5% 21.0% 28.3% 44.3% 39.2%
Difficulty in paying bills 8.4% 15.0% 17.6% 49.1% 55.2% 69.6%
Investment losses (e.g. stocks) 10.6% 15.2% 21.0% 17.9% 14.7% 31.7%
Serious illness 1.9% 4.5% 10.4% 15.3% 13.4% 16.7%
Credit card debt 6.9% 14.9% 14.7% 34.2% 44.6% 48.7%
Access to credit 0.9% 5.7% 2.5% 16.1% 15.9% 34.4%
Financial support to family or friends 3.4% 3.3% 10.3% 19.8% 17.1% 32.7%
Home foreclosure/mortgage issues 0.0% 1.4% 0.0% 6.3% 0.0% 60.3%
Difficulty in selling a house 1.2% 4.4% 0.0% 0.0% 0.0% 62.1%
One quarter later, the economic numbers still paint a grim picture
Q22. In the past six months, has anyone in your household been
affected by any of the following? Please check all that apply.
Green font – significant improvement in condition since Q2
Red font – significant deterioration in condition since Q2
Nouveau Poor has experienced the steepest perceived drop in economic well-being…and few segments expect a full return
20
25
30
35
40
45
50
55
60
65
70
2 Years Ago Year Ago 6 Mos. Ago Today Six Mos from Now
Unfazed Cautious Comfort Optimizer
Modest Means Hard Times Nouveau Poor37
Economic well-being rating (50 = “normal” times)
38
14.3% 15.1%
43.3%
72.3%
57.1%
48.7%
64.7%
47.1%
23.2%
39.8%37.0%
20.2%9.6% 3.1%4.5%
100.0%
Unfazed Cautious
Comfort
Optimizers Modest Means Hard Times Nouveau Poor
Substantial Changes in Lifestyle Some Changes in Lifestyle
Minor Changes in Lifestyle No Changes in Lifestyle
Q5. In recent months, have you changed your lifestyle at all to stretch your dollars more?
The Economy Prompting Degrees of Lifestyle Adjustment Across Segments. Hard Times and Nouveau Poor Report the Most Change
Lifestyle Changes in Past Six Months
10 pt 13 pt
12 pt
9 pt
39
Healthcare and Charitable donations have taken a hit, especially among the “less impacted” segments
17%26%
53%59%
42%
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
35%41%
52%59%
67%
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
% Reporting cutbacks in healthcare spending
% Reporting cutbacks in charitable donations
10 pt 7 pt 5 pt
10 pt 12 pt 6 pt
Green font – significant improvement in condition since Q2
Red font – significant deterioration in condition since Q2
40
30%
16%
65%
49%
32%
48%
Unfazed Cautious
Comfort
Optimizer Modest Means Hard Times Nouveau Poor
Q14. How important is it for you to get the absolute lowest prices when
you are grocery shopping?
Absolute Lowest Prices are an Imperative for Modest Means, Hard Times and Nouveau Poor. Yet, Nouveau Poor Appears Less Resolved in Q3
Absolute Lowest Prices% Rating Extremely Important
20 pt
Green font – significant improvement in condition since Q2
Red font – significant deterioration in condition since Q2
41
For Grocery Categories, Brand Abandonment has Accelerated Across all Segments, with Private Label Gaining Ground
80%
60%
36%
20%26%
45%
Unfazed Cautious
Comfort
Optimizer Modest Means Hard Times Nouveau Poor
6.6%12.3%
31.9%26.7%
1.8%8.4% 8.2% 10.6% 13.0% 10.7%
25.9%
16.9%
Unfazed Cautious
Comfort
Optimizer Modest Means Hard Times Nouveau Poor
Store Brands / Generics % Categories
Lesser National Brands % Categories
% of categories where “usual” brand still purchased
% of categories where alternative brand purchased
42
Although Less Reliant on Promotions Than Other segments, Cautious Comfort Shows Signs of Increased Vigilance Compared to Q2
16.0%
38.0% 38.0%
18.0%26.0% 23.0%
40.0% 40.0%
52.0%
24.0%
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
Doing more research and comparison shopping
Using the Internet more frequently to research products...
6 pt 24 pt
During the same time, Modest Means and Nouveau Poor have eased up
8 pt
23.2%
49.5% 51.4%51.0%
64.0%58.0%
74.0% 72.0%67.4%
30.2%
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
Rely more on weekly circulars to decide where to shop
Stock up on sale items
8 pt 6 pt 21 pt 21 pt
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46% 54%48%
47% 45% 46% 46% 50%
48% 49%
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
I will return to my previous spending habits
I will spend a little more, but try to be more conservative than before
I will continue to use my saving strategies
I don't know
Hard Times and Nouveau Poor Show Less Resolve in Q3 to Return to Old Spending
Q8. Once the economy improves, do you anticipate that you will continue to use the saving
strategies you are implementing to weather this tough economy or will you return to your previous
spending habits?
13 pt 12 pt 9 pt
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In Conclusion…
• While news reports may have reported the end of the recession, this
economic downturn is far from over in the minds and behaviors of our
average American grocery shopper.
– Times are still hard for the average American
– And we're not out of the water
- while some leveling has occurred among those most devastated by this downturn, others are newly entering this space
– Current perceptions of the economic climate is weak, but most see a more optimistic future
– But . . . purchase behavior is changing
- Those who initially took a brand search strategy are seeking convenience by abandoning brands and shopping cheaper stores
- Those new to cost cutting are adopting a brand search strategy (at least initially)
– And, we don’t see an intention to go back to previous behaviors
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Recommendations
• Intervention is required by both grocery retailers and manufacturers to reinvigorate
their relationship with their customers
– Relevant product/service differentials
– Quality
– Focus on health/environmental sustainability
– Improved overall value proposition – based on good pricing
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Key Demographics
Q3 2009
(N=1,021)
Gender
Male 21%
Female 79%
Age
18 – 34 years of age 22%
35 – 49 years of age 43%
50 – 64 years of age 35%
Mean 44.2 years of age
Region
Northeast 22%
South 33%
Midwest 26%
West 16%
Not specified 2%
Q3 2009
(N=1,021)
Education
High School graduate or less 23%
Some College 29%
Associate’s Degree 12%
Bachelor’s Degree 25%
Graduate or Professional Degree 11%
Employment Status
Employed full time 45%
Employed part time 14%
Unemployed/Looking for work 14%
Unemployed by choice 17%
Retired 10%
Annual Pre-Tax Household Income
Under $75,000 65%
$75,000 and higher 30%
Prefer not to say 5%
Mean (estimated) $63,850
THANK YOU
Debra Patek
Chief Economist & Cofounder
ThinkVine Corporation
513-235-3823 Office
47
Jane Mount
Executive Vice President
Digital Research, Inc.
207-985-7660 x121
Media Inquiries
Jeff Mills
VP Marketing & Client Engagement
ThinkVine Corporation
513-477-1729 Office