It appears that a thriftier consumer may be emerging from the Great Recession, according to a new report byThe NPD Group , Port Washington, N.Y.
NPD's latest study, "What's Next on the Road to Recovery," says many consumers feel that their financial situation will not improve or will be worse over the next year. Moreover, after two years of cutting corners, consumers have learned to get by with less and say they will continue to practice thriftiness at least for the next six to 12 months and perhaps well beyond that.
NPD says it wanted to examine how the Recession affected consumers’ habits related to food and beverage purchasing and usage.
The report finds that ...
... nearly one in five consumers expect to be worse off 12 months from now than they are today;
... half of all consumers expect their financial situation to be the same as it is today;
... looking ahead, 9 out of 10 consumers say they will plan and watch their spending on food and beverages outside the home.
“There are encouraging signs that the economy may be heading for recovery, but according to our findings, consumers, especially those with lower incomes, continue to struggle,” says Dori Hickey, director of product development at NPD and author of the report. “Most consumers have unquestionably felt the sting of tough economic times and have cut back on spending and adopted thriftier behaviors; behaviors that may become entrenched the longer the recession continues. Our findings suggest we may be looking at a new ‘normal’.”
Among the thriftier behaviors consumers say they will do more often than now over the next six months are:
- decreasing spending on groceries, especially those with household incomes under $35,000;
- using coupons for food and beverage items from newspapers or magazines;
- stocking up on foods and beverages when they are on sale;
- searching store circulars for low prices on food or beverages that are on sale;
- buying less expensive brands of foods and beverages, and searching for manufacturer coupons online.
“As food and beverage manufacturers and retailers begin to rethink their marketing communication programs as they start their recovery planning, it’s important that they understand their consumer’s mindset,” says Hickey. “Consumers lost personal wealth in this Recession and they’re skeptical that ‘things will go back to the way they were.’ In their minds, it appears the road to recovery will be a long one.”
NPD: "Consumers still wary, thrifty"
June 24, 2010