NPD: Most shoppers say price has to be right before they shop
PORT WASHINGTON, N.Y. — Price trumps sales and special deals, customer service and convenience as a factor in deciding where to shop for the majority of U.S. consumers, according to a survey by NPD.
NPD’s the Economy Tracker, a monthly monitor of consumer sentiment about the economy and spending, found that in its most recent survey, 85% of U.S. consumers said that price will be an extremely important/important factor in deciding where to shop in the near future, 10% more than those who feel sales and special deals are extremely important/important.
By income, 87% of those in the household income bracket of $25,000 to $50,000 selected price as extremely important/important, 85% in the $50,000 to $100,000 income bracket, and 82% in the $100,000-plus bracket.
Seventy-nine percent of young adults ages 18 to 34 years, 86% of adults ages 35 to 44 years, 88% of 45 to 54 year olds, 89% of 55 to 64 year olds and 86% of adults ages 65 years and older said that price was extremely important/important.
"Shoppers are now savvier when spending money. They have new ways of gauging the marketplace — they can compare prices on the Web while at home or while standing in a brick-and-mortar store with their smartphones," NPD SVP advanced analytics John Deputato said. "We certainly have moved to a time of calculated consumption for shoppers … and price has come to the forefront of the purchase decision."
Mother’s Day spending to top last year
WASHINGTON — If NRF’s predictions come true, moms will be in for an especially good Mother’s Day this year. According to NRF’s 2012 Mother’s Day consumer spending survey conducted by BIGinsight, the average person celebrating the holiday is expected to spend $152.52 on gifts, up from $140.73 last year. Total spending is expected to reach $18.6 billion.
"Despite grappling with high gas prices, Americans will look for sentimental and unique ways to shower mom with affection this year," NRF president and CEO Matthew Shay said. "As one of the most important holidays of the year, consumers can expect to see a wide range of promotions from mom’s favorite retailers leading up to the big day, including savings on apparel and electronics and even special Mother’s Day menu options at restaurants."
Of the 86.5% celebrating Mother’s Day this year, nearly 65% will shop for their mom or stepmom, while others will buy gifts for their wife (22.4%), daughter (10.5%), grandmother (8.2%), sister (8.4%), friend (7.6%) or godmother (2.1%).
"While still very mindful of their finances, consumers will open their wallets a little more this year to ensure Mother’s Day is extra special for the women in their lives," BIGinsight EVP Phil Rist said. "Many will use the opportunity to comparison shop and research products to save a few bucks, utilizing their mobile and tablet devices at home and in stores as they look for gifts and other ways to celebrate."
PFresh express rolls on at Target
MINNEAPOLIS — Another 90 Target stores are slated to receive fresh food in June as part of a major remodeling initiative that has become known simply as PFresh.
The stores will remain open during the remodeling process and are scheduled for grand-reopening on June 24. The 90 stores currently being remodeled represent the second of three waves of stores that will undergo transformation to the PFresh store design, so named because the most significant change involves the allocation of roughly 10,000 sq. ft. to fresh foods and expanded freezer and cooler doors.
“We are excited to incorporate our enhanced food assortment into additional stores in June,” Target SVP grocery Annette Miller said. “By remodeling these stores, we bring an expanded offering of fresh food and added convenience to our guests in these communities.”
Beyond the grocery aisles, most of Target’s new and remodeled general merchandise stores also feature updates in such other areas as beauty, home, shoes and baby. By year end, more than 1,100 Target stores will be operating under the PFresh format and the extensive remodeling program will be in its final phases.
In fact, this year marks a significant deceleration from the breakneck pace of activity seen the past two years when upwards of 350 stores were remodeled each year. A total of 230 remodels are planned for this year with the first wave of 100 remodels already complete in March. The 90 due for June leaves only about 40 remodels left for completion in October.
To view a complete map of Target store locations receiving the expanded grocery layout in June 2012, as well as those that received the remodel in the March 2012 cycle, check out Freshfood.target.com.