The drop-off in consumer spending and the uncertainty of the U.S. economy are sure to cause consumer product manufacturers to reconsider their plans to launch new products in 2009. But according to new research from Nielsen, the immediate reaction to abandon launches could be short-sighted and result in missed opportunities.
Nielsen recently mined insights from about 35 new item launches that are actively being monitored across a variety of packaged goods categories in the U.S. and found that product innovation remains important, but should be approached in a different way. For …

As consumers work hard to make their money go further, stores are feeling a hit.  But supercenters are actually benefiting.  Nielsen’s analysis of 2008 unit sales shows that nearly every department in supercenters showed growth, including dairy, dry grocery and prescription drugs.  In fact, the supercenter channel was the only retail channel to post overall unit sales growth, albeit a modest one percent.
“Mass merchandisers and grocery stores are feeling the impact of the supercenter,” said Todd Hale, senior vice president, Consumer & Shopper Insights for Nielsen.  “While the grocery channel …

China – one of the world’s fastest growing economies in recent years – has not been immune to the recession sweeping the global economy.  Its export-driven economy has slowed, and unemployment is growing.  The Chinese government has introduced a stimulus package and is encouraging citizens to spend more.  But whether they actually do so may require a change in cultural dynamics.  Without the social safety net of Western countries, the average Chinese family saves about 30 percent of its income (most American families save almost nothing).
How China shifts from an export …

Americans’ affinity for chocolate is widespread and well-known.  Its household penetration is 97.3 percent, and 96.7 percent of households repeatedly buy chocolate during the year.  In a twelve-month period, Americans bought chocolate candy on nearly 19 occasions.
But even this ubiquitous treat doesn’t seem to be immune to current economic conditions.  Since summer, equalized unit volume (EUV) has dropped uncharacteristically as consumers try to save money in every possible category.  Since July 2008, EUV sales have declined from 1.7 percent to 7.3 percent per month.  The category includes four segments: chocolate …

Between 2001 and 2008, more than 35,500 new stores – from warehouse clubs, supercenters and home improvement to convenience and grocery – opened around the U.S.  And while almost all categories of stores showed significant growth (except for drug stores, toy stores and electronics stores, which actually contracted) during the eight years studied, some formats showed greater promise than others.  According to new findings from Nielsen, the economic turmoil of the last year or so has already had a profound effect on the …

The worldwide economic slowdown has resulted in a significant decline in consumer spending as retailers of all types have been affected.   But while people may hold on to their cars longer or put off the purchase of a new handbag, they all must eat.  Even grocers are seeing a big change in how consumers are spending their money.  According to new Nielsen research prepared for the BBC, food shoppers are spending their money on more basic items such as white bread, baked beans and other staples.
Sales of standard sliced white …

This year, U.S. consumers are expected to spend more than $98 billion during the November-December holiday retail season, Nielsen reported Thursday.
Nielsen’s holiday retail forecast predicts a 4.7% gain in dollar sales over 2007.  Unit sales, however, are expected to be virtually flat (-0.8%) versus a year ago.
The forecast includes projected sales at food stores, drug stores, mass merchandisers, and convenience stores, across 125 product categories tracked by Nielsen.
With the economy in turmoil, the 2008 holiday season will be closely watched for indications of declining consumer spending.  Declines in consumer spending were …

Despite continuing tough economic times, consumers won’t be skimping on school supplies this fall, according to data released Tuesday by Nielsen.
The back to school shopping season is poised to peak in mid-August, and Nielsen is forecasting U.S. consumers will spend $1.57 billion on school and office supplies this year — 2.6% growth. 
This year, however, the selling season may be shorter and more intense, Nielsen predicts — as consumers wait for more aggressive sales and promotions by retailers.
Grocery stores may also play a bigger role this fall, as consumers seek to conserve …

More than half (55%) of UK consumers are cutting back on food purchases, Nielsen reported Wednesday.  Last year, Nielsen’s Homescan survey found that just a third (36%) of UK consumers were trying to reduce grocery spending.  
Meanwhile, sales at low-cost food retailers are growing.  In the last 12 weeks, Tesco’s sales were up 6.1% over the same time perod last year. Sales at Asda (+8.9%) and Morrison’s (+9.5%) grew by even larger percentages during the same period.
“Shoppers have been making fewer visits to the major supermarkets,” Mike Watkins, Senior Manager, Retailer …

The Wall Street Journal reported Friday that American shoppers are abandoning more expensive alternatives and trading down — to store brands, smaller cars, and discount stores.
With bargain-hunting and coupon-clipping all the rage, deep-discounters are seeing increased business, while pricier retailers are losing customers.  The story noted that visits to department stores are down 6% this year, down 7% at office-supply stores, and down 10% at home-improvement retailers, according to Nielsen.