The recession has made it necessary for Americans to rethink and adjust their shopping patterns, resulting in a more strategic, informed, and even calculating approach to shopping previously driven by impulse, advertising responsiveness and the fundamental attractiveness of brands.
A joint study by Deloitte and Harrison Group titled, "The 2010 American Pantry Study: The New Rules of the Shopping Game," found that 92% of people surveyed have changed their grocery shopping behavior in the last two years. 89% said they have become more resourceful while 84% say they are more precise when they shop.
Key findings from 2010 American Pantry Study:
Source: Deloitte and Harrison Group, July 2010
In addition, the survey showed that while this new shopping approach is generally based on spending less, 65% of people do not feel like they are sacrificing much. 79% reported feeling smarter about the way they shop versus two years ago. But consumers have embraced a persistent recessionary mindset, as 93% surveyed said they will remain cautious and keep spending at their current level, even if the economy improves.
Pat Conroy, vice chairman and Deloitte's consumer products practice leader, notes that "... personal gratification and a desire to feel smart about what consumers are putting in their shopping carts are trumping brand satisfaction... price-consciousness, value-orientation and bargain-hunting will remain prevalent for years... "
The study revealed four distinct shopper decision strategies, embodied by four segments of consumers, each reflecting their own attitudes and resourcefulness:
The Super Savers, Planners and Spectators, accounting for about 80% of shoppers, see the changes they have made as having led to emotional, as well as practical rewards, and they do not believe they have made unacceptable trade-offs in the marketplace.
Dr. Jim Taylor, Harrison Group's vice chairman and director of syndicated research, says "... the recession has given people the motivation to learn and adapt new strategies.... family gratification has replaced product satisfaction as the ‘go-to' goal for America's shoppers..."
The study also uncovered that loyalty cards are very important to shoppers with 84% reporting having at least one:
According to consumers surveyed, coupons are another popular tool with 67% of people increasing their coupon usage:
According to the survey, consumers don't believe they are sacrificing when buying store brands, with 85% saying they have found several brands that are just as good as national brands. 80% of those surveyed believe that most store brands are manufactured by the traditional national brands.
Perceptions of Store Brands | |
Perception | % of Respondents |
Believe that most store brands are manufactured by traditional national brands | 80% |
More open to trying private labels than 2 years ago | 74 |
Only 2 or 3 brands they can't live without | 51 |
Feel that traditional national brands are superior (in quality) than private label | 48 |
Intend to purchase more national brands as economy improves | 35 |
Feel as if sacrificing when purchasing store brand instead of national brand | 32 |
Source: Deloitte and Harrison Group, July 2010 |
Conroy concludes that "... Consumers have become so skilled in executing their new approaches that most feel they have become smarter, more calculating shoppers... "
For more about the American Pantry Study, and to download the executive summary, please visit here.