Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Consumer survey data
- Consumer Expenditure Survey
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- Reasons for budget shopping persist
- Belt tightening continues despite “end” of recession
- Strict budgeting slips in favor of opportunistic savings tactics
- Budget shoppers shop a variety of retail outlets
- Deal shopping the norm in supermarkets
- After effort to expand base, Walmart refocuses on core shopper
- Target shifts strategy to address everyday needs
- Kmart, with layaway and new private label, appeals to ‘smart’ shoppers
- Bulk sizes and treasure-hunt bargains drive warehouse club members
- Leading higher-end department stores adjust and stabilize
- Kohl’s outpaces value department store competition
- Discount stores offer unique finds
- Store brands have gained market share and lost much of their stigma
- “Extra” money spending increases, saving declines
Insights and Opportunities
-
- Playing the coupon game
- Upward mobility
- Dads, the new budget shopping frontier?
Inspire Insights
-
- Trend: Guiding Choice
Market Drivers
-
- Key points
- Consumer sentiment wavers as downturn persists
-
- Figure 1: University of Michigan Consumer Sentiment Index, March 2007-September 2010
- Unemployment and underemployment remain high
- Unemployment is higher post-recession
-
- Figure 2: U.S. national unemployment rate, January 2008-September 2010*
- Older workers continue to work
-
- Figure 3: Selected labor force measures, not seasonally adjusted, by age, February 2010
- Fewer teenagers take summer jobs
-
- Figure 4: Employment-population ratios for young men and young women aged 16-19 years, summer 1948–summer 2009
- Consumer prices rise minimally
-
- Figure 5: Consumer Price Index, all items, January 2008-September 2010*
- Inflation-adjusted median household income at 10-year low
-
- Figure 6: Median household income in inflation-adjusted dollars, 1999-2009
- Consumer expenditures slip in 2009
-
- Figure 7: Average consumer unit* annual expenditures, by item, 2007-09
Innovations and Innovators
-
- Going mobile: Shopping apps gaining momentum
- Shopping gets (more) social
Year-Over-Year Budgeting Trends
-
- Key points
- Who says the recession is over? Belt tightening continues
-
- Figure 8: Trended year-over-year budgeting trends, by total, July 2008-July 2010
- Women more likely to report budgeting more
-
- Figure 9: Year-over-year budgeting trends, by gender, July 2010
- All ages budgeting more
-
- Figure 10: Year-over-year budgeting trends, by age, July 2010
- Higher-income consumers’ budgets stabilize
-
- Figure 11: Year-over-year budgeting trends, by household income, July 2010
- Blacks, Hispanics more likely to be budgeting more
-
- Figure 12: Year-over-year budgeting trends, by race/Hispanic origin, July 2010
- Food and energy prices continue to prompt more budgeting
-
- Figure 13: Trended year-over-year reasons for budgeting more, by total, July 2008-July 2010
- Job losses hit men harder, prompting more budgeting
-
- Figure 14: Reasons for budgeting more, by gender, July 2010
- Lifestage dictates motivations for budgeting
-
- Figure 15: Reasons for budgeting more, by age, July 2010
- Different rationales for budgeting exist across income groups
-
- Figure 16: Reasons for budgeting more, by household income, July 2010
Creating the Budget and Watching for Sales
-
- Key points
- What’s the deal? Strict budgeting slips in favor of opportunistic savings
-
- Figure 17: Creating the budget and watching for sales, by total, July 2008-July 2010
-
- Figure 18: Creating the budget and watching for sales, by household income, July 2010
- Internet, email gain as coupon sources, traditional sources hold steady
-
- Figure 19: Household coupon sources, by total, 2005-2009/10
Where Consumers Shop
-
- Key points
- Budget shoppers flock to supercenters and dollar stores
-
- Figure 20: CPG shopping penetration, by retail channel, 2009-10
-
- Figure 21: Average CPG purchase occasions per household, by retail channel, 2009-10
- Women’s store choices reflect a focus on family needs—and fashion
-
- Figure 22: Stores shopped, by gender, July 2010
- Higher-income consumers spread the wealth
-
- Figure 23: Stores shopped, by household income, July 2010
- Budget shopping strategies vary by retail channel
-
- Figure 24: Retail channel budgeting behavior, July 2010
Grocery Store Budgeting Behaviors
-
- Key points
- Deal shopping the norm in supermarkets
-
- Figure 25: Grocery store/supermarket budgeting behavior, by gender, July 2010
- Younger supermarket shoppers a target for mobile shopping apps
-
- Figure 26: Grocery store/supermarket budgeting behavior, by age, July 2010
- Shoppers at all income levels look for deals in supermarkets
-
- Figure 27: Grocery store/supermarket budgeting behavior, by household income, July 2010
Walmart Budgeting Behaviors
-
- Key points
- After effort to expand base, Walmart refocuses on core shopper
- A reversal in the works
- Walmart shoppers look for low price
-
- Figure 28: Walmart Rollback television ad, 2010
-
- Figure 29: Walmart budgeting behavior, by age, July 2010
-
- Figure 30: Walmart budgeting behavior, by household income, July 2010
Mass Merchandiser Budget Behaviors
-
- Key points
- Target shifts in favor of everyday needs
-
- Figure 31: Target back to school television ad, 2010
- Figure 32: Target khakis television ad, 2010
- Kmart, with layaway and new private label, appeals to ‘smart’ shoppers
- Target and Kmart shoppers look for sale items first
-
- Figure 33: Mass merchandiser budgeting behavior, by age, July 2010
-
- Figure 34: Mass merchandiser budgeting behavior, by household income, July 2010
Warehouse Club Budgeting Behaviors
-
- Key points
- Bulk sizes and treasure-hunt bargains lure club members
- Clubs appeal to affluent shoppers
- Warehouse club members economize with bulk purchases
-
- Figure 35: Warehouse club budgeting behavior, by household income, July 2010
Higher-end Department Store Budgeting Behaviors
-
- Key points
- Leading chains adjust and stabilize
- Opportunities beyond price
- Macy’s local strategy pays off
- Nordstrom revamps website to deliver service
- Department store shoppers check sale items first
-
- Figure 36: Higher-end department store budgeting behavior, by gender, July 2010
-
- Figure 37: Higher-end department store budgeting behavior, by household income, July 2010
Value Department Store Budgeting Behaviors
-
- Key points
- Kohl’s delivers consistent value
-
- Figure 38: Kohl’s “Style’s Story” television ad, 2010
- Online kiosks to help Kohl’s complete the sale in the store
- Younger shoppers especially attuned to prices and promotions
-
- Figure 39: Value-priced department store budgeting behavior, by age, July 2010
Discount Store Budgeting Behaviors
-
- Key points
- Never pay retail: discount stores offer deals on unique finds
- Discount stores synonymous with sales
-
- Figure 40: Discount store budgeting behavior, by age, July 2010
-
- Figure 41: Discount store budgeting behavior, by household income, July 2010
Shopping for Food and Household Items
-
- Key points
- Shoppers employ a variety of tactics to save on food and household items
- Women are still tops in budget shopping, but men are making gains
-
- Figure 42: Food and household items shopping budgeting behavior, by gender, July 2010
- Younger shoppers search for sales and compare price online
-
- Figure 43: Food and household items shopping budgeting behavior, by age, July 2010
- Bargain shopping mentality cuts across income levels
-
- Figure 44: Food and household items shopping budgeting behavior, by household income, July 2010
Store Brands
-
- Key points
- Store brands gain stature and share in recession
- Most opt for store brands at least some of the time
- Store brands appeal to younger shoppers
-
- Figure 45: Private label shopping behavior, by age, July 2010
- Lower-income shoppers also more likely to buy store brands
-
- Figure 46: Private label shopping behavior, by household income, July 2010
Life’s Little Extras: How “Leftover” Funds are Spent
-
- Key points
- Money to spare—and spending it
- Dining out still tops the list for extra money
-
- Figure 47: Year-over-year extra money spending behavior, by total, July 2008-July 2010
- Men and women agree on extra spending, mostly
-
- Figure 48: Extra money spending behavior, by gender, July 2010
- Different priorities for extra money at different lifestages
-
- Figure 49: Extra money spending behavior, by age, July 2010
- Upper middle income group drives discretionary purchases
-
- Figure 50: Extra money spending behavior, by household income, July 2010
- Asians an opportunity for marketers of discretionary products and services
-
- Figure 51: Extra money spending behavior, by race/Hispanic origin, July 2010
Cluster Analysis
-
- Saving to Spend
- Characteristics
- Opportunity
- Essential Budgeters
- Characteristics
- Opportunity
- Barely Budgeting
- Characteristics
- Opportunity
- Cluster characteristics
-
- Figure 52: Budget shopper clusters, July 2010
- Figure 53: Reasons for budgeting more, by budget shopper clusters, July 2010
-
- Figure 54: Stores shopped, by budget shopper clusters, July 2010
- Figure 55: Food and household items shopping budgeting behavior, by budget shopper clusters, July 2010
-
- Figure 56: Creating the budget and watching for sales, by budget shopper clusters, July 2010
- Figure 57: Extra money spending behavior, by budget shopper clusters, July 2010
- Cluster demographics
-
- Figure 58: Budget shopper clusters, by gender, July 2010
- Figure 59: Budget shopper clusters, by age, July 2010
- Figure 60: Budget shopper clusters, by household income, July 2010
-
- Figure 61: Budget shopper clusters, by race/Hispanic origin, July 2010
- Cluster methodology
Custom Consumer Groups
-
- Moms more likely than dads to say they are budgeting more this year
-
- Figure 62: Year-over-year budgeting trends, by gender and presence of children in the household, July 2010
- Reasons for budgeting more consistent across gender/presence of kids
-
- Figure 63: Reasons for budgeting more, by gender and presence of children in the household, July 2010
- Kids drive parents to more stores
-
- Figure 64: Stores shopped, by gender and presence of children in the household, July 2010
- Kids motivate strict budgeting
-
- Figure 65: Creating the budget and watching for sales, by gender and presence of children in the household, July 2010
Appendix: Other Useful Consumer Tables
-
-
- Figure 66: Year-over-year budgeting trends, by number of children in household, July 2010
-
- Figure 67: Stores shopped, by age, July 2010
-
- Figure 68: Walmart budgeting behavior, by gender, July 2010
-
- Figure 69: Mass merchandiser budgeting behavior, by gender, July 2010
-
- Figure 70: Value-priced department store budgeting behavior, by gender, July 2010
-
- Figure 71: Value-priced department store budgeting behavior, by household income, July 2010
-
- Figure 72: Discount store budgeting behavior, by gender, July 2010
-
- Figure 73: Private label shopping behavior, by gender, July 2010
-
Appendix: Trade Associations
Back to top