Recent economy articles

Posted Aug 5, 2008

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 …

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Posted Aug 1, 2008

The Times (London) reported Friday that luxury retailers have increased their UK advertising spending over the last year — despite tough economic times.
The story noted that, according to Nielsen Media Research, Tiffany and Louis Vuitton increased their UK ad spending by £200,000 and £1.6 million, respectively, during the last year ending in June.   Meanwhile, Clinique and L’Oréal and boosted ad spending on their premium cosmetics lines by roughly £800,000 each, Nielsen reported.

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Posted Jul 23, 2008

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 …

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Posted Jul 22, 2008

In the U.S., food and gasoline prices are surging — along with unemployment, personal debt, and foreclosure rates.
These are just a few of the economic pressures that have forced U.S. consumers to change the “what, when and how” of their spending, James Russo, Vice President, Food Sector Marketing, Nielsen, writes in the July issue of Nielsen’s “Consumer Insight” online newsletter.
Drawing on data culled from across Nielsen’s global marketing, media, entertainment, and retailing services, Russo demonstrates how consumers and retailers are adapting to the tough economic conditions. His advice for manufacturers …

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Posted Jul 11, 2008

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.

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Posted Jul 2, 2008

Despite the current downturn in the U.S. economy, sales of wine and spirits remain strong, BusinessWeek reported Tuesday.
The story noted that sales of other consumer-discretionary products have been hurt by the poor economic conditions, but alcohol sales are proving to be resilient.  “Beverage alcohol continues to be pretty recession-resistant,” Richard Hurst, of AC Nielsen, told BusinessWeek.
In May, spirit sales rose by 5.4% on a dollar basis and 3.6% on a volume basis, according to Nielsen. 
A recent Nielsen study provides in-depth analysis of current trends in alcoholic beverage purchases.

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Posted Jun 27, 2008

BCS reports that American consumers are increasingly turning to social networks to share their woes over the continuing economic downturn, according to a recent Nielsen Online study.  The study mapped the trends of worries voiced by U.S. citizens while they are chatting online.
The study also showed that rising fuel costs and the increasing price of food has led some of the U.S. population to go online to share their saving tips with others.

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Posted Jun 24, 2008

Tough economic times have forced Americans to reduce their gasoline consumption and curtail spending sprees at the grocery store.
But despite that, Americans are avidly consuming candy, Nielsen analysts told the Associated Press . Recent consumer research by Nielsen found that candy is one of a handful of discretionary items that remain virtually recession-proof. ” A dollar candy bar treat in the face of filling up the gas tank for nearly $100 can be a powerful psychological motivator,” James Russo, vice president of marketing, Nielsen, told the Associated Press.
For more detail on recession-proof and recession-vulnerable products, …

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Posted Jun 20, 2008

Consumer confidence has fallen to its lowest level in several years, according to the Nielsen Global Consumer Confidence Index, the definitive gauge of consumer sentiment around economic and social concerns across 51 countries.

Nielsen’s Global Report on Consumer Confidence, Concerns, Spending and Attitudes to Recession

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Posted Jun 13, 2008

The recent economic downturn has forced consumers to rethink their spending habits. It has also forced consumer packaged goods (CPG) manufacturers and retailers to reevaluate their marketing strategies. Recent analysis by The Nielsen Company revealed those CPG product categories most immune and most vulnerable to a recession. The study shows that products such as seafood, dry pasta and candy are most immune to economic downturn. Beer and pasta sauces also show some level of immunity during tough economic times. The most vulnerable or recession-prone products include carbonated beverages, eggs, cups/plates, …

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