STORES Magazine - February 2009 - (Page 26)

EXECUTIVE SUITE / COVER STORY food restaurants: 37 percent of all adults say they consider spending at the local burger, pizza and taco shops to be untouchable. It follows that if consumers are not eating out as much, home-cooked meals will take center stage. But don’t expect shoppers to switch from higher-priced restaurant meals to organic foods. Eighty-five percent of survey participants consider organic food expendable and, among those who are already tightening the reins on the budgets, 32 percent say this is one area where they’ve chosen to cut back. And it appears that spending on entertainment like movie and theater tickets – which often accompanies dining out – also is considered a top candidate for the budget chopping block. More than half (54 percent) of the respondents who are already reducing spending have cut out movie and theater tickets. BACK TO BASICS younger group. Could that mean that the generation that refused to “grow old gracefully” and planned to “fight it every step of the way” has had a change of heart? Perhaps – but only to a point. The findings show that 47 percent of Boomers consider hair care (cut/color) to be “untouchable.” Among those 18 to 34, 70 percent consider hair care “expendable.” While each generation reacts a bit differently to the prospect of living with or without items like Internet service and cell phones, there’s no sidestepping how pervasive these tools have become in everyone’s lives. Three in four members of the younger crowd consider Internet service untouchable – 12 percentage points less than Boomers. When it comes to basic cell phone service, both groups respond nearly the same; about six in 10 consider this untouchable. Boomers are more passionate about basic cable/satellite TV; 72 percent say they can’t live without it. Of those who said yes . . . which items are you cutting back most? Men say . . . Fine dining at a sit-down restaurant Casual sit-down restaurant New pair of jeans 63% 58 53 51 50 53% of men and women are cutting back on new jeans Movie/theater tickets Vacation Women say . . . Fine dining at a sit-down restaurant Casual sit-down restaurant New pair of jeans New pair of shoes Source: BIGresearch, American Pulse Survey, December 2008 53% 62% 61 53 53 of women are cutting back on new shoes Department store apparel shopping 53 Generational differences here’s no doubt that consumers are thinking differently about how they spend their money and which purchases can be deferred, but the research uncovers distinct differences between what the 55-and-older crowd can and cannot live without and the responses of those in the 18to 34-year-old age group. Baby Boomers, already the owners of basements and closets full of stuff, seem more inclined to designate items as “expendable” than those consumers still in the acquisition phase. Boomers also are more inclined to be happy with basics rather than all the bells and whistles preferred by the under-35 set. It’s interesting to note that respondents 55 and older are more likely to bypass the high-end cosmetics counter, skip their facials and allow their gym memberships to expire than are the T Meanwhile, 18- to 34-year-old respondents are more likely to deem cell phone services like text and video to be features they cannot live without. They’re also more inclined to consider the purchase of an upgraded cell phone “untouchable.” Tough times, tough choices n a challenging economy, consumers are frequently forced to make difficult choices. That appears to be happening as consumers consider charitable contributions. When asked if they consider these donations to be expendable or untouchable, 68 percent of those polled picked the former. Younger respondents and those with annual incomes of $50,000 or less are most apt to cut back on donations. Among the survey participants who are already cutting back, 34 percent say they’ve pulled back on charitable contributions, I 26 STORES / FEBRUARY 2009 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - February 2009

STORES Magazine - February 2009 Contents Executive Editor's Page President's Page Are You a Pusher or a Puller? What Shoppers Think Online Retail Satisfaction 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story - Something’s Got to Give First Look Concept2Watch Online Partners Merchandising Sustainability Inventory Systems Drug Store Systems Business Intelligence Inventory Managment Online Marketing Supply Chain - Better Data, Better Decisions Returns Management - Identifying Fraud Data Security - Securing Intimate Data Anti-Shoplifting - Mall of Shame? Risk Management - Securing Consumer Confidence Loeb Retail letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar End Cap

STORES Magazine - February 2009

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