Consumers still shopping and spending less, says Nielsen
The market research organization said that the number of consumer visits to all shopping outlets in the United States hit a new low in February 2010, down four percent on a year earlier, and there was only a one percent increase in spending compared to February 2009, despite signs of a recovering economy. However, grocery stores have done better than many other retail outlets, especially as consumers began eating at home more and eating out less often.
“Retailers are converting lost restaurant trips into grocery trips,” the market researcher said, adding that a focus on store brands and value had driven continued interest from consumers.
Nevertheless, over the past four months, the frequency of grocery trips has fallen. Nielsen claims that this is partly to do with low consumer confidence, and also because of poor weather conditions across the United States, keeping many shoppers at home.
But Nielsen said that there are still opportunities for marketers to incentivize customer loyalty with reward programs, promotional offers and better value.
The market researcher said: “Offer value and low prices, but more important, stake a claim to at least one or two points of differentiation to maintain a competitive advantage.”
Nielsen concluded that a reduced number of shopping trips continues to be a pattern for consumers looking to cope in a difficult economic environment.
“In the latest battle for share of wallet, those retailers who satisfy consumers through differentiation will gain more of less,” it said.
