Consumers Shopping Less in Tight Economy
SCHAUMBURG, Ill. – Consumers are making fewer trips across retail outlets in the
face of rising gas prices and slowing economy, according to a recent Nielsen
Company survey.
Nielsen’s consumer packaged goods research shows that while shopping frequency
across most retail outlets is flat or on the decline, supercenters continue to
show growth.
Nielsen’s research shows that retailers are responding to consumers’ desire for
value and convenience with increased store openings. Store count is on the rise
in many retail channels, particularly in warehouse clubs, supercenters, dollar
stores and convenience stores. Store closings and conversions of mass
merchandise stores to supercenter formats has resulted in a decline in overall
mass merchandise count, and while supermarket count is up, the growth is not at
the rate of other retail channels.
“Increased store counts tell us that value and convenience are winning in the
marketplace,” said Todd Hale, senior vice president of Consumer & Shopper
Insights, Nielsen Consumer Panel Services. “Convenience retailers have expanded
aggressively, but this channel is facing competitive pressure as ‘big-box’
retailers offer lower-priced gasoline, attracting consumers.”
Nielsen reports that it is critical for retailers and manufacturers to
understand which consumers are shopping in the different retail channels.
“Know your shoppers,” said Hale. “Understanding the demographics of your loyal
shoppers is absolutely essential for growth. With this knowledge, retailers and
manufacturers can determine the products and brands that are the best fit for
the consumers shopping in their stores.”
Nielsen’s research shows diversity in the types of consumers that are the
biggest spenders in different retail channels. For example, younger and older
bustling families are important to mass merchandisers, supercenters, grocery and
warehouse clubs while older couples and older singles show a preference for drug
stores.
“Competition for shopper attention is fierce,” said Hale. “Success will come to
retailers who define themselves by who they sell to and how they sell them, not
by what they sell, while success will come to manufacturers who define
themselves by who they sell to and the issues they solve for their consumers and
retail partners.”
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