Recent consumer behavior articles

Posted May 1, 2009

Sales in the UK grocery sector showed promising growth in the eight weeks ended April 18th, racking up 4.2 percent increases, and volume growth of 5.8 percent over the same period in 2008.  The convenience sector also showed a 3.2 percent in sales growth over a year ago, a marked improvement from a few months ago when sales growth was languishing at about 1 percent.
Sales over Easter week benefited the out-of-town megastores, which rung up sales 22 percent over the same period last year.
“Over 20 percent growth is a welcome …

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Posted Apr 30, 2009

Todd Hale, Senior Vice President, Consumer & Shopper Insights
Last week, my colleague Tom Pirovano wrote about how the economic downturn has slowed the growth of organic products to almost a standstill.   Looking at the broader health and wellness category, we are seeing similar patterns.  Grouping health and wellness claims Nielsen tracks through its LabelTrends service into three tiers based on annual growth rates, retailers and manufacturers will notice some interesting developments.
Tier 1 (15% to 26% annual sales growth): Just one claim – omega – showed any dollar growth in the last four weeks, racking up …

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Posted Apr 24, 2009

Todd Hale, Senior Vice President, Shopper and Consumer Insight
The beginning of the year brought some surprising good news for retailers: retail sales (excluding automotive) rebounded in January and February.  While the figures were not earth-shattering – sales grew 1 percent and January and 0.7 percent in February – they were significant improvements on the last four months of 2008, where declines ranged from 1.2 percent to 3.1 percent.

Using data collected by the Nielsen Homescan Consumer Panel, we saw improved trip performance in the first two months of the year in …

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Posted Apr 23, 2009

Organic products – which are often priced at a premium over non-organic products – have taken a sales hit over the last 12 months as consumers have cut back discretionary spending, according to new analysis by Nielsen’s Director of Industry Insights, Tom Pirovano.  In March 2008, monthly sales of organic products grew 24 percent; a year later, growth almost came to a standstill of 1 percent, marking a dramatic shift from previous monthly growth rates of more than 30 percent seen in 2005 and 2006.
[click to enlarge graph]

“The recession and …

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Posted Apr 22, 2009

Global declines in consumer activity appear to be moderating or hitting bottom, according to the new edition of the Nielsen Economic Current, which is based on the company’s key consumer trend data as well economic data to create a concise indicator of consumer behavior.  Out of the 11 major GDP countries, only Germany showed an increase in consumer behavior in February.
“Consumers worldwide appear to be in a holding pattern and we see evidence that consumer spending might be positioned to turn around,” said James Russo, Vice President Global Consumer Insights …

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Posted Apr 15, 2009

Each new day seems to bring more bad news about the economy.  With uncertainty and fear looming, American consumers have cut back on their shopping trips and changed the way they spend their hard-earned money.  For food retailers and consumer packaged goods manufacturers, these new trends do not necessarily spell doom.  If they know how to address consumers’ changing needs and can successfully engage them by appealing to their desire for value, significant opportunities remain.
Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously …

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Posted Apr 9, 2009

Few Americans have been untouched by the economic downturn gripping the country. But how we respond varies widely by demographics, according to a Nielsen study. Understanding how we differ in the ways we cut back can create opportunities for manufacturers and advertisers.
Nielsen created eight segments that divided households into groups based on their behavior and reaction to the decline.  Despite conventional thinking that these segments are based primarily on income, characteristics such as age, household size and location were important factors in determining groups based on how they cut back …

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Posted Apr 9, 2009

Like most people in countries around the world, Taiwanese are experiencing record low consumer confidence.  And just as consumers in the U.S., U.K. and elsewhere have become more value-driven, so too have the Taiwanese, according to the latest Nielsen ShopperTrends report.
62 percent of Taiwan’s grocery shoppers claim to have become more price-sensitive, while among females over 35 and low income households, that number rises to 75 percent.  One store, Post Exchange, has capitalized on this trend with its low price strategy. As a result, 17 percent of all Taiwanese shoppers …

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Posted Apr 8, 2009

UK grocery sales grew at 2.7 percent in the first quarter of 2009 over the same period a year earlier, according to new research from Nielsen, with Morrisons leading the pack with 6.9 percent growth, followed closely by Asda with 6.7 percent and Sainsbury with 5 percent.  Tesco continued to lose market share, falling to 27.6 percent from 28 percent in the same period in 2008.  So what may be driving consumers to change where they shop?
“Shoppers are now well versed with money saving strategies, making the most of price …

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Posted Apr 3, 2009

The Canadian economy showed signs of improvement in January, while the economies of Germany, Italy and Spain showed signs of weakening economies, according to the latest edition of Nielsen’s Economic Current, which consolidates key consumer data from the company’s global research resources.  The U.S. economy continued to be weak, but showed no signs of worsening.
Other key findings from the survey include:

U.S. consumers reversed a six month trend of declining number of shopping trips and spending per trip.
Consumers in the U.S. and Canada spent more per trip across fast moving consumer …

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