Consumers still concerned over state of economy, turn to Internet for deals
CHICAGO — Concerns over the health of the economy are far from over, as evidenced by a SymphonyIRI Group survey released Wednesday that found consumers are taking even more steps to save money due to their ongoing financial concerns, including turning to the Internet in search of the best deals.
List making and coupon clipping still are top of mind for consumers as they struggle with high gas prices and question their job stability. Additionally, the survey uncovered that consumers are turning to the Internet to find the best deals, SymphonyIRI said.
"Consumers are feeling bumps in the road as the country continues to strive toward an economic recovery,” said Susan Viamari, editor of Times & Trends at SymphonyIRI. "Americans are still leery about their job stability and are finding it necessary to save even more money as they face uncertain times. To keep abreast of ever-changing consumer mindsets, SymphonyIRI will continue to track shopper behavior trends, as well as research new and emerging trends, such as the digital media trends we are closely examining in our new ‘Point of View’ [report].”
Statistics from SymphonyIRI’s MarketPulse survey for second quarter 2011, which builds on the findings from first quarter 2011, reinforced the fact that even though the Great Recession officially ended a full year ago, consumers are continuing to spend cautiously due to feelings of uncertainty about their economic futures. Findings included:
1-in-3 consumers expected their financial position would deteriorate in the coming year, and one-half of consumers anticipated no change in their finances during this time frame;
More than half of consumers expected the cost of daily living to rise, including food (70%), utilities (62%) and gasoline (58%); and
18% thought their job stability would deteriorate in the coming year.
From the Internet and blogs to in-store digital touchscreens and smartphones, consumers are leveraging digital media to find the best deals. And 8% of consumers are using the Internet to make lists, SymphonyIRI found.
“Since there is an ‘app’ for everything in today’s world, [consumer packaged goods] retailers and manufacturers must stay ahead of the digital curve to meet shoppers’ needs,” said Srishti Gupta, EVP emerging media solutions at SymphonyIRI. “Our new point of view, ‘Digital Dimension,’ explores the latest digital media trends and provides important insights for CPG marketers looking to capitalize on digital opportunities, as understanding adoption and usage nuances is critical to maximizing marketing opportunity in this space.”
“For instance, mid- to upper-income households (earning $55,000 to $99,000 annually) use the Internet more than most other consumer segments for various day-to-day activities, yet the wealthiest shoppers (earning more than $100,000 annually) are slightly behind this segment,” Gupta added. “The mid- to upper-income segment has higher broadband, as well a larger number of devices, such as laptops and smartphones, at their fingertips. The wealthiest shoppers, a segment which skews a bit older, has not yet embraced digital coupons with the same fervor, so their usage is not quite as high.”
The free "Point of View" report, “Digital Dimension: Consumers Embrace Digital Media with Diverse Approaches,” can be downloaded here.
Rite Aid sees sales rise across board for June
CAMP HILL, Pa. — Same-store sales at Rite Aid increased by 1.8% in June, the retail pharmacy chain said Thursday.
During the four-week period ended June 25, front-end sales were up 1.5% over the same period last year, while pharmacy sales increased by 1.9%, including a reduction of about 163 basis points due to new introductions of generic drugs.
Total drug store sales for the month increased 1% to $1.93 billion, compared with $1.91 billion in June 2010.
For the 17 weeks ended June 25, same-store sales increased by 1%, including a 0.4% increase in sales on the front end and a 1.3% increase in pharmacy sales. Total drug store sales increased 0.2%, to $8.29 billion, compared with $8.28 billion during the same period last year.
‘Top-scanned’ items during GMDC conference revealed
COLORADO SPRINGS, Colo. — The Global Marketing Development Center’s 2011 General Merchandise Marketing Conference featured more than 300 items in the Showcase Plus display earlier this month, GMDC said Wednesday.
The Showcase Plus allowed suppliers to present 4-ft. inline sections, as well as individual retail items, to the 165 wholesale/retail members who were in attendance.
“The showcase is always a real treat and another great benefit of the GMDC conferences, and this year’s showcase was no exception,” said David Lowe, senior director of health and beauty care, general merchandise and seasonal imports at C&S Wholesale Grocers. “Having the opportunity to see the actual products and displays in person — and in some cases, talk to the supplier at the same time — was very helpful,” he said.
A “top-scanned” list was visible throughout the four-day event, and at the conclusion of the conference, GMDC announced the top 10 top-scanned items. Among those top-scanned items were a Duck Tape rolling display from ShurTech Brands, a handy baby products assortment from Irish company Clevamama Baby Products and Crayola Freez’R Pops from A. Aronson.
Click here to view the complete list.