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The Budget Shopper - US - June 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Consumer Expenditure Survey
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Budget shopping indicators
Coupon use holding steady, redemptions are up despite fewer available coupons
Figure 1: Household use of cents-off coupons, January 2006-November 2011
Spending patterns shift to accommodate rising costs and flat wages
Figure 2: Average annual expenditures, by consumer unit, 2010
Budget shopping drivers
Economic pressures squeeze the middle class
Figure 3: Share of households with annual income within 50% of the median, 1970-2010
Figure 4: Median household income in inflation-adjusted dollars, 2000-10
Retail channels
Figure 5: Types of stores shopped in the last four weeks, January 2006-November 2011
The consumer
Share of respondents who are “budgeting more” increases
Figure 6: Trended year-over-year budgeting trends, July 2008-February 2012
Nearly all budget shopping behaviors have increased
Figure 7: Strict budgeting and looking for savings, July 2010 vs. February 2012
Conservative shopping strategies are the norm
Figure 8: Types of budget-conscious shopping behavior, February 2012
More consumers making efforts to find deals on food and household items
Figure 9: Food and household items shopping budgeting behavior, July 2010 vs. February 2012
Middle-aged women take a lesson from “extreme couponers” in their quest for deals
Figure 10: Extreme couponing, by gender and women’s age groups, February 2012
Most purchase private label over national brands at least sometimes
Figure 11: Private label vs. national brand shopping behaviors, by those who purchase the item, February 2012
Being a savvy shopper is a source of pride for many
Figure 12: Proud of deals and tells friends and family, by gender and household income, February 2012
What we think
ISSUES IN THE MARKET
Is budget shopping here to stay?
How can retailers stand out in a world where sales are expected?
What types of promotions convince consumers to stray from their shopping lists?
INSIGHTS AND OPPORTUNITIES
Shrinking middle class means trading down, looking for basics
Increasing household size, multigenerational living creates need for diverse products
Figure 13: Average household size in the U.S., 1930-2009
Mobile couponing may soon reach the masses—opportunities for all
INSPIRE INSIGHTS
Trend: Make it Mine
Trend: Let’s Make a Deal
BUDGET SHOPPING: INDICATORS
Key points
Nearly three quarters of households use coupons
Figure 14: Household use of cents-off coupons, January 2006-November 2011
Though coupon use is steady, savings are up while distribution has declined
Consumers increasingly turn to private label brands to save money
Spending patterns shift to accommodate rising costs and flat wages
Figure 15: Average annual expenditures, by consumer unit, 2006-10
Personal savings falls, indicates effects of recession continue to be felt
Figure 16: Personal savings nationwide, by quarter, 1952-Q1 2012
Spending vs. saving: consumers still more likely to say they are spending less
Figure 17: Spending more, less, or about the same compared to the past, April 2009-April 2012
Figure 18: Share who are spending more/less and whether this is normal or temporary, April 2009-April 2012
BUDGET SHOPPING—DRIVERS
Key points
 THE U.S. MIDDLE CLASS HAS BEEN STEADILY DECLINING
Figure 19: Share of households with annual income within 50% of the median, 1970-2010
Median household income has fallen for the last three years
Figure 20: Median household income in inflation-adjusted dollars, 2000-10
Disposable personal income stagnated between 2009 and 2010
Figure 21: Changes in disposable personal income, January 2007-March 2012
Poverty rate rose to 15.1% in 2010—the highest level in 17 years
Figure 22: Poverty rate in America, 1980-2010
 RISING COSTS PUT PRESSURE ON FAMILY BUDGETS
Single healthcare contributions increase 47% compared with 2006
Figure 23: Average annual worker contributions to healthcare coverage premiums, by single and family, 2001-11
Energy prices continue to march, causing cutbacks in other areas
Figure 24: Fuel oil and gasoline average costs, All Items CPI, January 2007-April 2012
Employment and labor participation rates remain low
Figure 25: Unemployment and underemployment, January 2007-April 2012
Figure 26: Labor force participation rate, January 2007-April 2012
STORE TYPES SHOPPED
Key points
Store types visited remains relatively steady over the past five years
Figure 27: Types of stores shopped in the last four weeks, January 2006-November 2011
INNOVATIONS AND INNOVATORS
Target a leader in mobile coupon innovation
New technology makes electronic coupons scannable at checkout
YEAR-OVER-YEAR BUDGETING TRENDS
Key points
“Budgeting more” increases compared with 2010, near recession level
Figure 28: Trended year-over-year budgeting trends, July 2008-February 2012
Figure 29: Year-over-year budgeting trends, by gender, age, and household income, February 2012
Reasons for budgeting more are relatively consistent from 2008-12
Figure 30: Trended year-over-year reasons for budgeting more, by total, July 2008-February 2012
Increasing costs—more so than reduced income—prompts budgeting
Figure 31: Reasons for budgeting more, February 2012
STRICT BUDGETING VS. OPPORTUNISTIC SAVINGS
Key points
Nearly all budget shopping behaviors increase from 2010
Figure 32: Strict budgeting and looking for savings, July 2008-February 2012
Strict household budgets most common among those budgeting more
Figure 33: Strict budgeting and looking for savings, by year-over-year budgeting trends, February 2012
Women are more inclined toward opportunistic cost savings
Figure 34: Strict budgeting and looking for savings, by gender, February 2012
Women put more effort into getting the best deals when shopping
Figure 35: Budget shopping behaviors, by gender, October 2010-November 2011
Strict budgeting falls off with age, opportunistic cost savings increases
Figure 36: Strict budgeting and looking for savings, by age, February 2012
Lower-income consumers more likely to be strict budgeters, less likely looking for savings
Figure 37: Strict budgeting and looking for savings, by household income, February 2012
Figure 38: Newspaper audience, by household income, 2011
RETAIL CHANNELS SHOPPED AND SHOPPING BEHAVIORS
Key points
More shoppers visiting a variety of retail channels
Dollar stores on a growth trajectory
Figure 39: Retail channels shopped, July 2008-February 2012
Conservative shopping strategies adopted during the recession appear to have become habit
Sales and “percent-off” discounts are expected
Figure 40: Types of budget-conscious shopping behavior, February 2012
Buying on sale, other savings strategies more common among women
Figure 41: Types of budget-conscious shopping behavior, by gender, February 2012
Affluents more likely to exhibit budget shopping behaviors
Figure 42: Types of budget-conscious shopping behavior, by household income, February 2012
SHOPPING BEHAVIORS BY CHANNEL SHOPPED
Key points
Across nearly every channel, shopping for sale items is top strategy
Figure 43: Shopping behaviors, by retail channel shopped, February 2012
Grocery shoppers engage in a variety of budget shopping behaviors
Figure 44: Types of budget-conscious shopping behavior, by grocery store/supermarket shoppers, July 2009-February 2012
Walmart shoppers are drawn to everyday low prices
Figure 45: Types of budget-conscious shopping behavior, by Walmart shoppers, July 2009-February 2012
Shoppers at mass merchandisers don’t always look for the cheapest
Figure 46: Types of budget-conscious shopping behavior, by mass merchandiser shoppers, July 2009-February 2012
Club store shoppers bulk up
Figure 47: Types of budget-conscious shopping behavior, by club store shoppers, July 2009-February 2012
Even at the high end, shoppers are looking for bargains
Figure 48: Types of budget-conscious shopping behavior, by higher-end department store shoppers, July 2009-February 2012
Value-priced department store shoppers embrace budgeting behaviors
Figure 49: Types of budget-conscious shopping behavior, by value-priced department store shoppers, July 2009-February 2012
Discount store shoppers are looking for the lowest prices
Figure 50: Types of budget-conscious shopping behavior, by discount store shoppers, July 2009-February 2012
SHOPPING FOR FOOD AND HOUSEHOLD ITEMS
Key points
More consumers making efforts to find deals on food and household items
Figure 51: Types of budget-conscious shopping behavior, when shopping for food and household items, July 2010-February 2012
Women more committed to budget shopping for food and household items
Figure 52: Types of budget-conscious shopping behavior, when shopping for food and household items, by gender, February 2012
“Extreme couponing” hits a chord among middle-aged women
Figure 53: Extreme couponing, thoughts about purchase limits, and asking for rain checks, by gender and gender by age groups, February 2012
Budget shopping for food and household items spans all income levels
Figure 54: Types of budget-conscious shopping behavior, when shopping for food and household items, by household income, February 2012
PRIVATE LABEL VS. NATIONAL BRAND PURCHASES
Key points
Most purchase private label over national brands at least sometimes
Figure 55: Private label vs. national brand shopping behaviors, by those who purchase the item, February 2012
Men are more apt than women to always/usually purchase store brand
Figure 56: Private label vs. national brand shopping behaviors – Always/Usually buy, by gender, February 2012
“Frugal fatigue” does not appear to have set in
Figure 57: Ways consumers save on household purchases, by key demographics, February 2012
DAILY DEALS AND FACEBOOK FRIENDING FOR DISCOUNTS
Key points
Women more likely to use “daily deal” sites and Facebook for discounts
Figure 58: Online daily deal site and Facebook discount use, by gender and gender by age groups, February 2012
Affluents are most likely to have purchased a daily deal
Figure 59: Online daily deal site and Facebook discount use, by household income, February 2012
BUDGET SHOPPING BRINGS SATISFACTION
Key points
Being a savvy shopper is a source of pride for many
Figure 60: Proud of deals and tells friends and family, by key demographics, February 2012
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Year-over-year budgeting trends
Figure 61: Year-over-year budgeting trends, by race/Hispanic origin, February 2012
Reasons for budgeting more
Figure 62: Reasons for budgeting more, by race/Hispanic origin, February 2012
Strict budgeting vs. opportunistic savings
Figure 63: Strict budgeting and looking for savings, by race/Hispanic origin, February 2012
Hispanics have larger households
Figure 64: Household size, by race/Hispanic origin of householder, 2010
Median household income of Asians highest, Hispanics and blacks among the lowest
Figure 65: Median household income, by race and Hispanic origin of householder, 2010
Budget shopping behaviors
Figure 66: Budget shopping behaviors, by race/Hispanic origin, October 2010-November 2011
Retail channels shopped and shopping behaviors
Figure 67: Retail channels shopped, by race/Hispanic origin, February 2012
Asians are motivated to get the best prices—not the cheapest products
Figure 68: Types of budget-conscious shopping behavior, by race/Hispanic origin, February 2012
Shopping for food and household items
Figure 69: Food and household items shopping budgeting behavior, by race/Hispanic origin, February 2012
Private label vs. national brand purchases
Figure 70: Private label vs. national brand shopping behaviors – always/usually buy, by race/Hispanic origin, February 2012
Daily deals and Facebook friends for discounts
Figure 71: Online daily deal site and Facebook discount use, by race/Hispanic origin, February 2012
CUSTOM CONSUMER GROUPS—PARENTS
Key points
Year-over-year budgeting trends
Figure 72: Year-over-year budgeting trends, by gender and presence of children in household, February 2012
Reasons for budgeting more
Figure 73: Reasons for budgeting more, by gender and presence of children in household, February 2012
Strict budgeting vs. opportunistic savings
Figure 74: Strict budgeting and looking for savings, by gender and presence of children in household, February 2012
Shopping behavior
Figure 75: Types of budget-conscious shopping behavior, by gender and presence of children in household, February 2012
Shopping for food and household items
Figure 76: Food and household items shopping budgeting, by gender and presence of children in household, February 2012
Private label vs. national brand purchases
Figure 77: Private label vs. national brand shopping behaviors – always/usually buy, by gender and presence of children in household, February 2012
APPENDIX—OTHER USEFUL CONSUMER TABLES
Year-over-year budgeting trends
Figure 78: Year-over-year budgeting trends, by generation, February 2012
Reasons for budgeting more
Figure 79: Reasons for budgeting more, by age and by race/Hispanic origin, February 2012
Figure 80: Reasons for budgeting more, by household income, February 2012
Figure 81: Reasons for budgeting more, by age, February 2012
Figure 82: Reasons for budgeting more, by urban area, February 2012
Strict budgeting vs. opportunistic savings
Figure 83: Strict budgeting and looking for savings, by reasons for budgeting more, February 2012
Retail channels shopped
Figure 84: Retail channels shopped, by gender, February 2012
Figure 85: Retail channels shopped, by household income, February 2012
Figure 86: Retail channels shopped, by generation, February 2012
Figure 87: Retail channels shopped, by year-over-year budgeting trends, February 2012
Shopping behaviors
Figure 88: Types of budget-conscious shopping behavior, by age, February 2012
Retail channels’ shopping behaviors
Grocery store/supermarkets
Figure 89: Grocery store/supermarket shopping behaviors, by gender, February 2012
Figure 90: Grocery store/supermarket shopping behaviors, by gender and presence of children in household, February 2012
Walmart
Figure 91: Types of budget-conscious shopping behavior, by Walmart shoppers, by gender, February 2012
Mass merchandisers
Figure 92: Types of budget-conscious shopping behavior, by mass merchandiser shoppers, by gender, February 2012
Club stores
Figure 93: Types of budget-conscious shopping behavior, by club store shoppers, by age, February 2012
Value-priced department stores
Figure 94: Types of budget-conscious shopping behavior, by value-priced department store shoppers, by household income, February 2012
Internet-only stores
Figure 95: Types of budget-conscious shopping behavior, by internet-only store shoppers, by age, February 2012
Shopping for food and household items
Figure 96: Food and household items shopping budgeting behavior, by year-over-year budgeting trends, February 2012
Figure 97: Food and household items shopping budgeting behavior, by age, February 2012
Figure 98: Extreme couponing, thoughts about purchase limits, and asking for rain checks, by age and household income, February 2012
Figure 99: Extreme couponing, thoughts about purchase limits, and asking for rain checks, by race/Hispanic origin February 2012
Private label vs. national brand purchases
Figure 100: Private label vs. national brand shopping behaviors, February 2012
Figure 101: Private label vs. national brand shopping behaviors – always/usually buy, by age, February 2012
Figure 102: Private label vs. national brand shopping behaviors – always/usually buy, by household income, February 2012
Figure 103: Private label vs. national brand shopping behaviors – always/usually buy, by urban area, February 2012
APPENDIX—TRADE ASSOCIATIONS

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