For the first time since the recession, several positive macroeconomic factors are beginning to emerge such as higher consumer confidence, decreasing unemployment and poverty rates, and consumer spending on the rise. The US population is growing and greying, with Baby Boomers getting older and comprising more of the population as well as Hispanics who will comprise nearly 20% over the next few years. This is notable given that all minorities, and especially Hispanics, exhibit multiple budget shopping actions and are more likely to be extreme in their saving and shopping behaviors.

These positive indicators are not - and will not - translate into exponentially different or frivolous spending patterns, as consumers remain cautious and conservative, ready to prepare for the worst, should the worst reappear or manifest itself in a different way. Coupons are still used by more than half of shoppers, consumers are still deferring mid- to high-ticket purchases for a “little while longer,” and saving the exceptions for little splurges that involve things like an escape, relaxation, an indulgence, or family bonding time. Budget shoppers will actively research, seek out bargains, invest a lot of time in the process, and even go out of their way to ensure they stay within their means. For this reason, they should be relatively easy to find and reach; the challenge for retailers will be managing how to meet their customers’ demands for low price while still being mindful of the bottom line and their own financial state.

This report builds on the analysis presented in Mintel’s The Budget Shopper – US, June 2012, Budget Shopper – US, October 2010, October 2009 and October 2008 reports.

This report explores the shopping behavior and attitudes of budget shoppers. In particular the report tracks how budget shoppers’ shopping behaviors have changed from the peak of the recession (2008-09), immediately following the recession (2010), to recovery (2012) to today (2014).

For the purposes of this report, the term “budget shopper” refers to the degree to which consumers across a range of demographics/income groups assess the budgetary impact of their shopping and spending habits by weighing sales incentives and cost-savings behaviors against where they choose to shop and what they choose to purchase.

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore attitudes and shopping behaviors of budget shoppers. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted September 8-22, 2014, among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Simmons National Hispanic Consumer Study (NHCS). The Experian Marketing Services, Simmons NHCS was carried out during April 2013-June 2014 and the results are based on the sample of 21,371 adults aged 18+, with results weighted to represent the US adult population.

Part of the Experian Marketing Services, Simmons NHCS analysis includes an economic outlook segmentation. Utilizing a large set of attitudinal and behavioral variables, Simmons created five distinct segments of consumers to help with understanding, targeting, and messaging to them based on their different outlooks regarding personal finances and the economy at large.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

In addition to quantitative consumer research, Mintel also conducted an online discussion group among a demographically mixed group of 21 adults aged 18+. This discussion group was asynchronous (ie not run in real time), functioning like a blog or bulletin board, with questions remaining posted for a predetermined period of time. This method allows participants to respond reflectively, at their leisure, or to log off to think about any issues raised, and return later to respond. Participants were recruited from GMI’s online consumer panel. All quotes are included verbatim, and as such, include typos and other grammatical errors as they originally appeared.

The Consumer Expenditure Survey (CEX) consists of two surveys, the quarterly Interview Survey and the Diary Survey, that provide information on the buying habits of American consumers, including data on their expenditures, income, and consumer unit (families and single consumers) characteristics. The survey data are collected for the Bureau of Labor Statistics (BLS) by the US Census Bureau.

The Consumer Expenditure Survey uses consumer units (CU) rather than households. According to the BLS, “a consumer unit is defined as either:

• all members of a particular household who are related by blood, marriage, adoption, or other legal arrangements;

• a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or

• two or more persons living together who pool their income to make joint expenditure decisions.

Financial independence is determined by the three major expense categories: housing, food, and other living expenses. To be considered financially independent, a respondent must provide at least two of the three major expense categories.”

The following is a list of abbreviations used in this report:

Generations are discussed within this report, and they are defined as:

* also known as Generation Y or Echo Boomers