Retailers, consumers and prices
Check out the “Downturn Generation.”
That’s what data tracking firm Information Resources Inc is calling a “new generation of Americans (that) is adopting practices similar to Depression-era shoppers, implemented both to weather the recession and to keep a close eye on spending long after the recession ends.”
Basically, we want everything on sale. And that means lots and lots off the original price. The New York Times today pointed out how retailers are pushing deep discounts of 50 percent or more to attract shoppers.
According to IRI’s study, more than 69 percent of consumers surveyed say they are more likely to look through retailer ads for deals and nearly 82 percent are more likely to look for sale prices once in the store.
Also, it’s not just one store they are looking at. Fifty-nine percent visit multiple stores for the lowest prices, and 42 percent of those shoppers will continue to do so into the future.
Just under two-thirds (65 percent) say price is becoming more important than convenience in brand purchases.
Oh, and along with this new frugality comes another benefit: sharing is in and for some people it could stay.
Thirty percent are making bulk purchases with others not in their households to secure low unit prices, and 35 percent of those shoppers intend to continue doing so. At the same time, more than 34 percent are collecting, sharing and trading coupons with others, with 40 percent of those shoppers planning to continue this behavior.
Also in the basket:
Price fixing takes a hit (Wall Street Journal)
Office Depot posts loss
Fortune Brands to cut payout, affirms ’09 outlook
Under Armour posts stronger than expected profit
Coke Enterprises profit, outlook tops view
DineEquity posts higher profit
David Beckham designs (WWD)