STORES Magazine - September 2008 - (Page 27)

Consumer 360° Consumers Making Informed Choices Bargain Hunting When Price Matters Most Consumers are constantly being reminded that times are tough. And with high gas and energy prices, there doesn’t appear that there will be any meaningful relief any time soon. But consumers are still finding ways to buy what they need – they’re just being more creative and disciplined. They are going online to compare prices, cutting out coupons for their weekly grocery trip or apparel purchase and cutting back on the things that are not necessities. It is price that seems to matter the most to consumers in 2008, and they are taking all measures to find the best prices for the things they need. “I only buy clothing on sale” 26% 24 22 20 18 16 14 12 10 July 2007 July 2008 17.7% American Express CMs Non CMs 18.7% 21.1% 25.6% “No Preference” for where they shop most often in each category Men who only Women who only buy on sale buy on sale Women’s Clothing Men’s Clothing Children’s Clothing Children’s Toys Shoes Electronics Sporting Goods Linens/Bedding/Draperies Home Improvement Prescription Drugs Groceries (1st Choice) Groceries (2nd Choice) Health & Beauty Aids (1st Choice) Health & Beauty Aids (2nd Choice) 50.4% 18.2 64.0 65.6 24.7 34.5 55.9 46.5 37.5 38.6 20.9 26.9 32.3 44.6 7.9% 30.2 47.0 48.5 11.5 24.1 54.2 24.2 23.8 19.6 9.3 13.3 12.2 22.2 *”Only buy on sale” refers to those who responded “I only buy clothing on sale” when asked “Which one of the following best describes your shopping strategy for clothing?” The Bargain Hunter and the Bargain Huntress Both men and women are shopping based on price. According to the July 2008 Consumer Intentions and Actions (CIA) survey from BIGresearch, 20 percent of men and 23 percent of women indicated that they only buy clothing when it’s on sale. Why they shop, especially for clothing, is similar; where they shop is not. Women are more likely to have a preference as to where they shop most often in every survey category except men’s clothing. Even when buying their weekly groceries, however, more than 1 in 5 men have no preference as to where they shop, compared to fewer than 1 in 10 women. While both are hunting for bargains, the huntress seems to have more of a plan. Shopping for Bargains Among the retail categories where consumers can choose to be bargain hunters are home furnishings, groceries, shoes, clothing and electronics. Consumers can cut spending in these segments by shopping around, either online or in the mall. When it comes to clothing/apparel, looking for an item on sale is top-ofmind for many when hitting the malls; for some, it’s the only thing on their minds. While they are looking for bargains just like everyone else, American Express® Cardmembers seem to be less “sale-reliant” than other shoppers. The number of Cardmembers who say they “only buy clothing on sale” increased 19.2 percent between July 2007 and July 2008, according to the Consumer Intentions & Actions Survey conducted by BIGresearch. By comparison, the increase among non-Cardmembers was 36.9 percent over the same period. The Trend Continues Even though average gas prices have dropped below $4 per gallon again, a large portion of consumers is still planning to decrease spending in the foreseeable future. According to the CIA survey, women index higher than men when it comes to decreasing their overall spend in the next three months. Sponsored by It seems women will continue to hunt for those bargains at a higher rate than men. Overall, however, the trend seems clear: When times get tough, consumers get really smart. ADVERTORIAL

Table of Contents Feed for the Digital Edition of STORES Magazine - September 2008

STORES Magazine - September 2008 Contents Executive Editor's Page President's Page Office Depot Unveils First Green Store Dunkin’ Donuts Debuts DDSMART What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Are You a Facebook Fan? RFID Concept2Watch E-commerce Supply Chain Marketing ERP Credit Web Optimization LP Vantage Point Newsbeat Cover Story LP Program Building Biometrics Industry Perspective Customer Service Site Selection E-Commerce LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - September 2008

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