Consumers Seek Savings
Consumers are choosing their preferred grocer based on the money-saving opportunities it offers, new research from IRI reveals.
The news should come as little surprise: Although more than half (55 percent) of consumers say their household financial health is good, 49 percent are making sacrifices and looking for deals to make ends meet, according to the Chicago-based research firm’s Q2 2017 Consumer Connect survey.
According to the survey, 95 percent of consumers select a store based on its ability to fulfill their needs at the lowest possible cost. The numbers are roughly the same across generations, too: 96 percent of Millennials feel this way, while 95 percent, 96 percent and 94 percent of Gen Xers, Baby Boomers and seniors agree, respectively.
Additionally, consumers are looking for programs and products that can help them save money: 82 percent choose a store based on a good selection of private label products – typically known for offering national-brand quality at lower price points – while 74 percent do so seeking a strong loyalty or discount program.
However, the younger generations are a bit more likely to opt for private label products than older shoppers with sentiments surrounding store brands and loyalty/discount programs: While 86 percent and 84 percent of Millennials and Gen Xers, respectively, seek a good selection of store brands, 80 percent and 79 percent of Baby Boomers and seniors, respectively, feel the same. Moreover, while 79 percent each of Millennials and Gen Xers want a strong loyalty or discount program, 74 percent and 66 percent of Baby Boomers and seniors, respectively, agree.
“Since consumer spending accounts for about 70 percent of the U.S. economy, consumer hesitation to spend is a really big deal, and it is leaving CPG marketers struggling to find true and sustainable growth in a low-growth marketplace,” said Susan Viamari, VP of thought leadership for IRI. “This also is playing out in the nonfood sector, where consumers are taking a very cautious approach to their purchases. They are buying what they need rather than stocking up and purchasing those nice-to-have items in the beauty/personal care, health care [and] general merchandise aisles.”