ENGLEWOOD CLIFFS, NJ, August 14, 2008 – More than 30%of consumers are eating at home more and eating out less and 40% feel worse off than a year ago as shoppers continue to grapple with managing their budgets during uncertain economic times, according to a new study released by Unilever. The study, "Winning Shoppers in Turbulent Times–A Unilever Trip Management Report," reveals how different demographic groups will change their shopping habits as belts continue to tighten during challenging economic times.
"Consumers are clearly feeling the effects of a perfect storm of challenging economic events such as the mortgage crisis, stock market volatility, and rising energy costs," said Lisa Klauser, Vice President of Consumer and Customer Solutions, Unilever U.S. "They are reacting by taking a new approach to shopping as our study found that quick trips to the grocery store are declining and major stock-up trips that allow consumers to replenish their cupboards for a long period of time are on the upswing."
Though consumers are closely watching their budgets, they don't want to give up on product quality. According to the study, a majority of consumers will continue to search out trusted brands across the store, with most shoppers stating that they would not switch to a private label to save money.
Further, consumers would like manufacturers and retailers to be creative in product packaging and sales approaches. There were several shopper preferences including introducing larger pack sizes, smaller package sizes at lower price points, and modestly reduced package sizes with the same price point. The least preferred option – the introduction of slightly lower quality items with the same price point.
"The reality is that consumers still need to feed their families during these tough times. The challenge for them is how to get it done in the most economical way possible without sacrificing quality," added Klauser.
Among the top 12 categories shoppers say they will not abandon include canned vegetables, fresh meat and seafood, margarine and pet food.
Among the top five categories where shoppers would reduce their expenditure if the economy continues to struggle include cookies, beer/wine, frozen dinners and soda.
Click here to download the full report.
