• by Sarah Mahoney  @mahoney_sarah, September 3, 2008

A new survey from TNS Retail Forward reports that shoppers are continuing to trade down, shopping more often at cheaper stores, and buying more private-label goods wherever they shop. Those shifts are occurring as consumers intensify their search for shopping venues that offer both one-stop shopping and lower prices.

 

But figuring out which stores are winning isn't easy, the study reports: While discounters may be stealing some customers from department stores, for example, they are likely losing others to dollar stores. "As a result of shopper migration, retailers' customer profiles are shifting," the Columbus, Ohio-based consultant says in its release. "Some are shifting not just because they are gaining customers who are trading down, but because they are losing customers who are turning to even more value-oriented channels."

While it's no news that the softening economy is changing consumers' retail preferences, it is a little surprising by how much: 26% of its survey say they are now shopping at stores other than their usual favorites to save money, and consciously avoiding more upscale and specialty retailers. Power centers continue to gain share, stealing share away from strip centers and regional malls, with 60% of shoppers saying they shopped frequently at these types of shopping centers in July, compared to 56% in June.

The study also finds that the majority of consumers are making a concerted effort to save money on gas, with 75% saying they are planning their errands differently, 58% seeking out more one-stop-shopping destinations, and 55% looking for stores that are closer to either work or home. And 26% say they are shopping online more frequently--a trend that is especially strong among women, midlife shoppers, and more affluent shoppers.

(Separately, Wal-Mart released a survey with similar findings. Among a poll of its back-to-school shoppers, one-stop-shopping was among the biggest money-saving strategies, along with shopping with a list and taking a full inventory of clothes and supplies before leaving the house.)

Some consumers--admittedly in smaller percentages--are making even more deliberate changes, says Retail Forward. For example, 23% say they are cutting back on visiting friends and family members who live farther away, 17% have reduced the miles driven during vacation, and 15% are either walking or biking to get around.

But category spending has remained fairly consistent, it says. While shoppers may be buying what they need in different stores, they say they are still spending about the same amount on clothing, consumer electronics, groceries, and health and beauty care. The big exceptions? "Home improvement spending declined substantially year to year and home furnishings spending also weakened," the survey reports, "both victims of a weak housing market."