Latest Consumer Research
NEW RESEARCH FROM VALASSIS FINDS THAT WEALTHY AB SHOPPERS ARE SEEKING OUT PROMOTIONS TO CUT COSTS.
Promotional responsiveness of shoppers highlights how the recession is tightening its grip across all social classes.
Key findings:
- One in three consumers are looking for promotional offers more than they were a year ago
- 77% say they have used a coupon for supermarket shopping
- 34% of AB shoppers are stocking up on products on promotion
- 29% of AB shoppers buy more store branded goods rather than mainstream brands
- 15% of AB consumers are shopping at discount supermarkets
New independent market research commissioned by coupon services provider, Valassis, has found that promotional offers are having a significant influence on the everyday buying habits of ‘recession-shoppers’, and even wealthy AB consumers are now searching for bargain-basement prices.
The research found that 31% of consumers across all social classes are looking for promotional offers more than they were a year ago. 26% cited a rise in the general cost of living as the reason for them being more promotionally responsive, whilst 29% said it was because food was more expensive, and 21% stated it was because they have less money than a year ago.
Significantly, the research proves that the appeal of promotional offers, and more specifically coupons, are not exclusive to consumers of lower social status, with AB consumers now seeking out more bargains than they were a year ago. 34% of respondents from the AB social class bracket said that they now stock up on products when they are on promotion, whilst 29% of AB consumers now buy more store branded goods rather than mainstream brands. In addition, 26% of AB consumers are now careful to remember their coupons when going to the supermarket compared with a year ago, whilst 15% of AB consumers are now shopping at discount supermarkets. These findings highlight the impact that the recession is having on those consumers of higher social class. Last month, Waitrose – which is known for its ‘home counties’ customers – announced that more than £100 million of products in the ‘essential Waitrose’ budget range had been sold since launching in March . And there is increasing evidence of wealthy shoppers trading down from luxury goods for cheaper basics in discount supermarkets such as Aldi and Lidl
In more general terms, when consumers across all social classes were asked what changes they had made to their shopping habits over the last 12 months, 36% of respondents said that they now stock up on products that are on promotion when a year ago they didn’t. 35% buy more store branded goods rather than mainstream brands compared with a year ago, whilst 30% of respondents also said that they now shop at multiple supermarkets to get the best deals. 23% said they are now shopping at discount supermarkets.
Coupon usage is also increasingly popular in the current economic climate. 30% of respondents said they are now careful to remember their coupons when going to a supermarket, whilst 18% claim they are using more coupons than they were a year ago. 38% of respondents said that coupons influence them to try new products. In total, 77% of consumers said that they had used a coupon for supermarket shopping.
Commenting on the research findings, Charles D’Oyly, managing director of Valassis, says, “We are in the midst of the worst recession in over 50 years and people are increasingly worried about their job security, rising food costs, and whether they will be able to pay their bills every month. Against this backdrop, consumers are increasingly seeking out promotional offers as they carefully watch the pennies. Recession shoppers are far more likely to stock up on products that are on promotion, they will buy more store branded goods and they will shop at multiple supermarkets in order to get the best price. All of this means that UK brands now have a fight on their hands to win new business and to retain their most loyal customers.”
D’Oyly continues, “UK brands must ensure that their promotional activity is based on a strong understanding of consumer attitudes in a recession in order to maximise annual spend and drive greater returns. Brand managers need to gain real insight into the way customers behave in response to promotional activity if they are to drive greater returns for their brands and deliver commercial gains to their Board and Shareholders.”