ND1116114

Title: Grocery Shoppers Maintain Spend

Description: But a new survey finds that consumers are looking for more value and service.

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BELLEVUE, Wash. ? A majority (81 percent) of consumers spent the same amount or more money on groceries over the last three months (August� to October) than they did in the three months before, according to The Coinstar Grocery Snapshot Survey. However, consumers are looking for more from retailers, citing added value and service as a primary driver of their purchasing decisions.

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The survey found that shoppers are seeking and taking advantage of opportunities to save through a back-to-basics approach. Just over half of consumers (56 percent) have used more coupons within the past 6 months than they have in the past, while 57 percent of consumers say they are most encouraged to use loyalty or value cards when instant rewards are credited to their current purchase. Consumers are relying more on the money they have in their pockets, using debit cards (42 percent) or cash (27 percent) as their primary form of payment for groceries.

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?Today's cost conscious consumers are willing to spend money at the supermarket as long as they view their experience as streamlined and value-oriented,? said Engle Saez, vice president of category management and consumer experience for Coinstar, in a press release.

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These trends are likely to continue through the holiday season, evidenced by National Retail Federation data showing that the 2011 holiday season will be ?average,? with only a 2.8 percent increase in sales compared to the 5.2 percent increase that retailers experienced last year. Consumers are spending carefully by purchasing more grocery brands rather than private label brands (48 percent) and fewer discretionary, or non-necessity items, such as magazines or candy (42 percent).

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?Grocers clearly have a tremendous opportunity to attract and build loyalty among shoppers this holiday season, by focusing on ways to increase the level of service, value, and simplicity they can offer to customers. Retailers catering to the savvy shopper, through more options and flexibility, will position themselves for an advantage in today's competitive market,? said Saez.

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Content Subject: Research

Formatted Article Date: November 16, 2011

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