Commentary

Gas Savings Go To Groceries

According to the results of nationwide research from retail analytics firm Precima, groceries are the top item on which U.S. consumers are spending their savings from lower gas prices, ahead of putting the money in savings, holiday gift buying and paying off credit cards. 

Of the 3,013 consumers, nationally representative of U.S. grocery shoppers, who were asked to choose from a list of ways they use money saved on gas:

  • 48% said they're spending it on groceries
  • 42% said saving
  • 37% holiday gift buying
  • 30% paying off credit cards
  • 10% entertainment
  • 14% said other

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The gas-to-groceries switch is even higher in certain key sectors. Among those survey respondents who said they've suffered a direct financial loss during the recession, 55% said they're spending gas savings on groceries, and for those whose annual income is under $35,000 the number is 59%.

Conversely, 34% of retirees said they're spending gas savings on groceries. The number fell to 29% for those whose annual income exceeds $100,000.

Brian Ross, general manager of Precima, says "... this is a silver lining for grocers... this trend builds on... earlier research that showed that consumers are now eating more at home."

In another significant finding from the survey, nearly two-thirds of respondents said the recession is changing the way they plan their grocery trips:

  • 27% of consumers said they can no longer afford to stock up on food and now buy only what they need week to week
  • 35% said they stock up more than they used to, but only when items are on sale

Of the 65% of respondents who said their stocking habits have changed:

  • 5% said they stock up more
  • 54% said they stock up only when items are on sale
  • 41% no longer stock up at all
  • Queried about the grocery category most likely to make them switch supermarkets to get a better price, respondents said:
  • 76% fresh produce
  • 72% meat and seafood
  • 71% dairy
  • 62% paper products
  • 55% canned foods
  • 53% snacks-beverage-candy
  • 41% convenience foods
  • 39% deli
  • 15% baby products

For more information, please visit Precima here.

 

2 comments about "Gas Savings Go To Groceries".
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  1. Nancy Fraser from Nota Bene Consulting, January 13, 2009 at 10:20 a.m.

    Are 76% of shoppers really willing to switch for a better price on fresh produce?

    Paying less for produce that is lower quality and then having to throw a portion of it away is self defeating.

    I think what they ultimately want is better value. Where convenience, selection and price are similar some other attribute that adds value will tip the scales on where people shop.

  2. whoisrandy 1, February 16, 2009 at 1:41 a.m.

    its nice... but here's another great idea for this for more visit www.bettersalespromo.com about gas and groceries.

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