+44 (0) 1536 400123

info@valassis.co.uk

NUMBER OF CHRISTMAS SHOPPERS SEEKING PROMOTIONS SET TO SOAR ACCORDING TO RESEARCH FROM VALASSIS

-As the economy continues to struggle, new research shows consumers are more likely to turn to coupons and promotional offers to make Christmas as special as ever-

Key findings:
− 32% of women (vs 27% of all shoppers) are looking for more promotional offers than they were this time last year as the belt tightening seen in 2010 continues to get worse this Christmas
− Almost a quarter of shoppers (23%) who are looking for more promotions state they have less money than they did a year ago (up from 12% in April 2011)
− Only 8% of shoppers would remain loyal to their supermarket of choice if other retailers were offering better discounts at Christmas
− 78% of shoppers are planning to use promotional offers when doing their Christmas shopping this year, with 54% stating they intend to use three or more different promotional mechanics
− 74% of wealthier AB shoppers plan to use money off vouchers when Christmas shopping vs. the average of 59%

DATE: New independent market research from Gfk NOP commissioned by Valassis Ltd, shows that more than ever, deal hungry consumers will be turning to coupons and vouchers to make their budgets stretch further throughout the festive period. The UK’s flagging economy continues to put a squeeze on shopping habits, and surprisingly even time poor, cash rich AB shoppers intend to make smart use of coupons and vouchers to keep down the Christmas bills.

According to the research, 32% of women are looking for more promotional offers than they were this time last year (versus 27% of all shoppers). Top of the list of mechanics people intend to use for saving money was 'money off’ product coupons, with 65% of shoppers planning to use this mechanic when doing their Christmas grocery shopping. Meanwhile 59% of shoppers will use 'money off’ vouchers, which would, for example, give them £5.00 off a £40.00 basket spend, when doing their Christmas grocery shopping.

Eighteen percent of shoppers confess to being genuinely worried about how much they will spend on groceries this Christmas, with the rise in the cost of living cited as the main reason for an increasingly frugal approach to promotions (40% – up from 23% in April ’11), as is the price of food (28%). Almost a quarter (23%) of those shoppers who are seeking out more promotional offers state they simply have less money than they did a year ago.

Charles D’Oyly, managing director of Valassis UK, says, “The economic climate is making it harder for shoppers to get into the Christmas spirit this year as they carefully count their pennies in the face of rising gas, electricity, fuel and food costs, and read daily headlines about recession and major eurozone concerns. What is particularly noticeable is the declining consumer confidence. When we commissioned a similar survey in April 2011, only 12% of the respondents said they had less money than a year ago but within seven months this has almost doubled (23%).”

Contrary to stereotypes, the research indicates that it is wealthier AB consumers who are the savvier shoppers, with 74% of people in this demographic planning to use money-off vouchers (compared to an average of 59%) and 26% are looking out for more products on promotion when they do their Christmas shopping. In total, 61% of this group are likely to use both these mechanics.

Worryingly for retailers, only 8% of shoppers stated that they would remain loyal to their supermarket of choice if other retailers were offering better Christmas shopping deals. Echoing this point, 42% of shoppers plan to shop in more stores to redeem all the store specific coupons and vouchers that they have, and this is most prominent among the 16 - 34 age group (59%); behaviour they are likely to continue as they get older.

D’Oyly concludes, “Money was tight for consumers last Christmas but this latest research highlights that now things are even worse. With consumer finances stretched to breaking point, brand and retailer loyalty seems to be in short supply. Retailers and brands therefore need to fight hard to retain customers by offering them promotional incentives that can drive down costs and bring more Christmas cheer to UK households up and down the country.”

ENDS

About Valassis Ltd www.valassis.co.uk

Valassis Ltd, the UK’s leading coupon and voucher services provider, helps major brands adopt a more integrated approach to their sales promotion investments.

Valassis performs crucial data management and financial clearing services for the likes of Sainsbury’s, Unilever and Associated Newspapers. Responsible for handling most of the UK’s coupons and vouchers, Valassis Ltd is uniquely positioned to deliver insights on UK consumer promotions and is often quoted as an expert in the media.

Valassis is part of Valassis Communications Inc, the US’s leading media and marketing services company offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Headquartered in Livonia, Michigan, Valassis employs approximately 7,000 associates worldwide in countries including Germany, Italy, Spain, Poland and the UK. Other Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc. For more information, visit http://www.valassis.com.

For further information, please contact:

Kieran Kent / Max Deeley
itpr
tel: +44 (0)1932 578800
Email: valassis@itpr.co.uk
Twitter: @ITPRGROUP

Stephen Back
Valassis Ltd
t. +44 (0) 1536 400123
Email: info@valassis.co.uk
Twitter: @ValassisUK


-New research from Valassis finds that coupon usage continues to soar, even amongst Britain’s wealthier shoppers - May 2011

-Post-recession shoppers across all social classes and age groups are seeking out promotions to make their budgets go further-

Key findings:

− 61% of consumers use coupons up from 52% in June 2010
− 37% of consumers are looking out for promotional offers more than they were a year ago
− 16% are using more coupons than they were a year ago
− Wealthier AB shoppers use coupons as much as other demographic groups
− Major shifts seen in promotional behaviour among 55+ age groups
− 22% have used an Internet coupon in the last 12 months
− 7% have used a mobile coupon in the last 12 months

18th May 2011: New independent market research commissioned by the UK’s leading coupon and voucher services provider, Valassis Ltd, has found that promotional offers are having an even greater impact than previously thought on the everyday buying habits of post-recession shoppers, as consumers across all social classes and age groups continue to seek out ways to make the domestic budget go further.

According to the research, 61% of consumers use coupons (up from 52% in the Valassis June 2010 survey).

• 24% stated they use coupons very frequently.
• Furthermore, 16% of consumers stated they are using more coupons than they were a year before (14% in June 2010).
• 37% of consumers are looking out for promotional offers more than they were a year ago (28% in June 2010).
• The price of food (27%) and the cost of living (23%) were cited as the main reasons for this increased interest.

The Valassis research reveals a couple of myth busters about the profile of a typical coupon user.

• Whilst coupons have been perceived traditionally as the preserve of lower social groups and the unemployed, the research highlights that coupons are far from beneath AB shoppers:
    − AB shoppers use coupons as much as other demographic groups – 61% reporting coupon use.
    − 33% of AB shoppers are looking out for promotional offers more than a year ago.
• Interestingly and perhaps counter-intuitively, 40% of those in full-time employment are on the hunt more for offers than they were a year ago, whilst only 34% of those not working are doing the same.

The research threw up a couple of interesting differences between different age groups:

• Coupon usage is highest among 35 – 44 year olds with 67% using coupons up from 57% in 2010.
• Seeking out promotions as an activity is highest among 25 - 34 year olds, with 47% looking out for promotional offers more than they were a year ago (33% in June 2010).
• The research showed a very significant shift in promotional behaviour among older age groups:
    − The increase in coupon usage was also found among 55 - 64 year olds (64%) although the increase
       was more pronounced, up from 52% in 2010.
    − 29% of the 65+ age group stated they were looking out more for promotional offers than a year ago
       (16% in June 2010).
    − Whether these trends are a function of belt-tightening from low fixed-income returns or becoming more
        offer-savvy through the Internet marketers should take this as a clear signal to adapt their promotional
        messages to appeal to older consumers.

The survey also reveals that coupon and voucher downloads from the Internet continue to grow in popularity.

• 22% said that within the last 12 months they had used a voucher or coupon found on the Internet (20% in June 2010)
• 7% reported using a digital coupon or voucher from a mobile phone in the last 12 months (2% in June 2010).
• Of those respondents that had downloaded an Internet or mobile coupon, 41% had used their coupon at a restaurant or fast food outlet, whilst 38% had used such a coupon in a supermarket. The rise in coupons or vouchers being used in restaurants corresponds to the growth and prominence of voucher websites over the last three years.

Commenting on the research findings, Charles D’Oyly, managing director of Valassis UK, says, “Economic conditions remain tough and as a result consumers across all social and age groups are embracing promotional offers more and more. With the cost of living and the price of food continuing to rise shoppers are looking for best value on the high street, and they are now far more likely to buy products that are on promotion, to re-evaluate their historical purchasing habits and to shop at multiple locations in order to get the best deal.”

D’Oyly continues, “This research destroys the myth that coupons are solely the domain of the less well off. In the current economic climate, even wealthier shoppers are seeking ways to make the domestic budget go further.”

About Valassis Ltd

Valassis Ltd, the UK’s leading coupon and voucher services provider, helps major brands adopt a more integrated approach to their sales promotion investments.

Valassis performs crucial data management and financial clearing services for the likes of Sainsbury’s, Unilever and Associated Newspapers. Responsible for handling most of the UK’s coupons and vouchers, Valassis Ltd is uniquely positioned to deliver insights on UK consumer promotions and is often quoted as an expert in the media.

Valassis is part of Valassis Communications Inc, the US’s leading media and marketing services company offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Headquartered in Livonia, Michigan, Valassis employs approximately 7,000 associates worldwide in countries including Germany, Italy, Spain, Poland and the UK. Other Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc. For more information, visit http://www.valassis.com.

For further information, please contact:
Max Deeley
itpr
t. +44 (0)1932 578800
maxd@itpr.co.uk