As American consumers get set to buy nearly 600 million pounds of candy this Halloween, they are choosing fewer store brand or private label sweets, opting instead for brand name treats.

How low will prices go? 2009 might become known as the year of the price cuts, rollbacks, coupon redemptions and strong store brand sales. This is good for shoppers, but will the value strategy backfire on retailers?

Back in the summer of 2008, gas prices in the U.S. hit record highs, with an average price per gallon topping $4 a gallon.  As a result, consumers changed their behavior in order to save gas when possible.  For example, 78 percent said that they combined errands and trips where before they might not have thought twice about separate trips to the grocery store and mall.  Consumers stayed home more often, choosing to entertain at home and eat out less.  These money-saving steps were taken in an effort to save …

Price cuts are providing consumers with exceptional value, but they are showing up in the form of weakening or declining department, category and same-store store sales trends for many U.S. retailers.

Coupon enthusiasts are the driving force behind exploding redemption rates, according to new findings from Nielsen’s Homescan. Eighty-one percent of the units purchased using manufacturer coupons came from just 19 percent of U.S. households

U.S. shoppers are trimming down shopping lists, downloading coupons, opting out of pricey goods and downshifting to less expensive product and channel alternatives. Three retail trends prevail in this recessionary economy.

Consumers are sticking with basic purchases in categories like fresh meat, pasta, packaged dinners along with baking mixes and supplies as meal preparation consumption comes back to the home.
Increases in wine and alcoholic beverages indicate that consumers are opting to consume their favorite beverage at home too. At the same time they are continuing to avoid discretionary items, according to the latest monthly update of U.S. Retailing & Consumer Trends from The Nielsen Company.
The non-edible departments were the greatest contributors to an overall 1.2 percent unit sales decline at food, …

Consumers are continuing to purchase private label products at an increasing rate, according to new research from The Nielsen Company.
The “U.S. Store Brand Development” found that both private label dollar and unit sales significantly increased for the 52-week period ending July 11, 2009 versus the prior year.
Dollar sales grew by 7.4 percent to $85.9 billion within food, drug and mass-merchandisers (including Walmart), with shares recorded at 16.9 percent. This reflects an increase of 0.7 points from the previous year. Growth peaked in 2008 but then slowed slightly in 2009 with …

Todd Hale, Senior Vice President – Consumer & Shopper Insights
A fellow Nielsen associate recently sent me an article she had received from a client about how private label was receiving high acceptance among even affluent American households.  While I am a huge fan of the attitudinal insights from consumer survey data, I am also a huge fan of the behavioral insights from consumer panel data.  The best of both worlds is when we get to integrate both data types in our analytical work in the consumer packaged goods industry.  But …

As the “great recession” continues and consumers hear conflicting messaging about when the U.S. economy will improve, shoppers from all income levels are increasingly seeking out and taking advantage of deals at the grocery store. Whether in the form of store promotion or deal or manufacturers coupon, deal rates are up more than 8% from a year ago for households earning more than $70K, a faster rise than the 6% uptick for middle-income households ($30K-$69.9K) and 5% gain for the lower income households earning less than $30K per year.

Those affluent …