• by Jack Loechner , Staff Writer @mp_research, August 3, 2008

Increasingly feeling the pain at the pump, more U.S. consumers are taking steps to compensate for rising gas prices, according to new research from The Nielsen Company. Nearly two-thirds (63 percent) of consumers are reducing their spending, up 18 points since June 2007 and up 14 points in the last six months alone.

Nielsen's research also finds that more consumers are combining shopping trips, and more than half of consumers are now eating out less, and staying home more often.

Todd Hale, senior vice president, Consumer & Shopper Insights, The Nielsen Company, says "With gas prices passing the $4 per gallon mark, consumers are altering their driving and spending habits at dramatic levels... (and)... even affluent consumers are looking for ways to make their dollars go further."

Increased fuel prices are leading nearly one-third (32 percent) of consumers to use more coupons as a way to save money, up from 25 percent in December 2007. Seeking to get the bulk of their errands done while using less gas, 28 percent of consumer report doing more of their shopping at supercenters, where more items are in one store.

"Consumers tell us that they are using more coupons... an opportunity for (CPG) manufacturers... " said Hale.

Nielsen's research shows that more consumers (35 percent) are buying less expensive brands, up 12 points since December 2007. Private label and lower-priced brands stand to benefit from higher gas prices.

Hale continued "... While private label shows significant growth, it's important to remember that more than half of private label sales growth comes from only four product categories: milk, fresh eggs, cheese and bread or baked goods, which are greatly impacted by inflationary pricing resulting from higher livestock feed prices or higher raw ingredient prices..."

Although a small base, Nielsen's research shows some consumers are shopping online and carpooling or using public transportation more often.

Hale concludes "Swings in fuel supply will continue to have a tremendous impact on consumer shopping and buying behavior... retailers can take a creative approach to promotions, pricing and partnerships..."

For more information, please visit the Nielsen Company here.