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Welcome to the ShopperScape™ Newsletter July 2009

In the face of rising unemployment and a reversal of upward momentum on Wall Street, shoppers returned to a more somber outlook on spending plans in June (Figure 1).

• The percentage of shoppers who plan to spend more in the coming month remained relatively steady at 8%, while the percentage who plan to spend less jumped 9 percentage points.
• On the bright side, the number of shoppers scaling back their spending—while still high—has declined since January.
  

Figure 1

Intentions to Spend More, the Same or Less at Retail Stores
in the Coming Month Compared to this Time Last Year

Source: Retail Forward ShopperScape™, June 2008 to June 2009

Shoppers’ evaluations of their household financial health remain mixed.  Job security and household income level continue to weigh heavily on shoppers’ minds as the national unemployment rate continues to climb.  On the other hand, stabilization in the housing market is reflected in shoppers’ appraisals of their home values, which have remained steady recently (Figure 2).

• Shoppers’ evaluations of their household income level are at the most dismal point this year—one in three (33%) shoppers say they are worse off compared to last year with respect to household income.
• Corresponding with the dip in the stock market toward the end of June, shoppers’ evaluations of the worth of their investments also deteriorated.
• The percentage of shoppers who say they are better off in terms of credit card debt levels increased slightly, but so did the percentage who say they are worse off.

Figure 2

Shoppers' Perceived Household Financial Health Compared with Last Year

Source: Retail Forward ShopperScape™, January–June 2009

Despite mixed evaluations of household financial health and dampened spending plans, many shoppers indicate that they are reaching their limit in how much they plan to change the way they shop (Figure 3).

• About one-half of shoppers surveyed (51%) say that they do not plan to make any more changes in their shopping habits in the future.
• However, more than one-third (36%) of shoppers say they have made changes and plan to make even more in the future.

Where shoppers fall along this spectrum depends a good deal on the generational cohort to which they belong:

• Baby boomers are most likely to have changed their shopping habits and still plan to make more changes.  This cohort also is less likely than all shoppers to say they have not—and do not plan to—change their shopping behaviors.
• Seniors are the most likely group to have resisted change and plan to continue to do so.
• Members of generation X clearly represent the “mainstream” and look very similar to all shoppers in terms of past and future changes in behavior.
• Members of generation Y are most likely to have held off on making changes in their shopping habits but plan to make changes in the future.

Figure 3

Past and Future Changes in Shopping Behavior

Note: Highlighting/bolding indicates a percentage that is significantly higher than all shoppers (95% confidence level)

Source: Retail Forward ShopperScape™, June 2009

As consumers reevaluate their spending priorities and adjust their shopping habits, their attitudes about the importance of social responsibility and eco-friendliness have remained stable with a few exceptions (Figure 4).

• The percentage of shoppers who said supporting workers’ rights and working to reduce greenhouse gas emissions are very important to them in deciding where to shop and what to buy decreased significantly.
• In contrast, the percentage of shoppers saying that local ownership is an important factor in deciding where to shop increased significantly.

Figure 4

Importance of Factors in Deciding Retailer or Brand to Shop

Note: Highlighting/bolding indicates a statistically significant difference between
September 2008 and June 2009 (95% confidence level)
Source: Retail Forward ShopperScape™, September 2008 and June 2009

Although shoppers still support initiatives on social responsibility and eco-friendliness, they are less willing to pay extra for incorporating those initiatives into product offers (Figure 5).

Figure 5

Percentage of Shoppers Willing to Pay Extra for
Socially Responsible or Eco-Friendly Products

Note: Highlighting/bolding indicates a statistically significant difference
between September 2008 and June 2009 (95% confidence level)
Source: Retail Forward ShopperScape™, September 2008 and June 2009

The recession has forced many shoppers to get creative about saving money, which is reflected in shifts in six different shopping modes commonly used (Figure 6).

• Between March 2008 and June 2009, the percentage of shoppers using four of the six shopping modes increased significantly.  The largest increase is in the percentage of shoppers who say they look to retailers for advice on how to do things or to get help solving problems.  This supports a growing DIY mindset the recession has helped to propagate.  But, shoppers need advice from retailers about how to realize their DIY goals.
• Time- and money-saving modes of shopping also have increased their penetration.

Examination by income market shows:

• Up Market shoppers are much more likely to shop in modes to discover new things or to express themselves.
• Likely because they are doing less shopping in general, Down Market shoppers are less likely to utilize any of the shopping modes with the exception of looking to a retailer for advice on how to do things or get help solving problems.

Figure 6

Shopping Modes

Note: Highlighting/bolding indicates a statistically significant difference between March 2008 and June 2009 or a percentage that is signficantly higher than all shoppers in June 2009 (95% confidence level)
Source: Retail Forward ShopperScape™, March 2008 and June 2009

ShopperScape™ members will receive a more detailed analysis of current shopping trends and spending plans.  ShopperScape™ members also can request assistance in custom analyses of this information by contacting Rachel McGuire at rmcguire@retailforward.com or Mandy Putnam at mputnam@retailforward.com.

The need—and the challenge—is greater now more than ever for retailers and brand marketers to capture shoppers' attention and spending.  Retail Forward’s ShopperScape™ has something for everyone:

Retailers:

• Leverage the power of ShopperScape™ to track who’s in your stores and your competitors’ stores on a monthly basis.
• Interpret store and channel performance.
• Evaluate how share of preference for merchandise categories is shifting.
• Profile your high spending shoppers for key merchandise groups. 

Branded Suppliers:

• See what’s happening to your major accounts and their core competitors every month.
• Develop account-specific marketing and merchandising strategies, based on shopper insight about their customers.
• Identify market opportunities for major customers. 

Service Companies:

• ShopperScape™ can help you identify real business opportunities for your clients. 

Interested in learning more?  We thought so.

Click on a link below to register for one of two orientation Webinars, “ShopperScape™:  Inside and Out” and learn how your organization can take its shopper insights to the next level. Webinars will be led by a Retail Forward shopper insights analyst. Each session will be one-hour and will allow for Q&A.

WEDNESDAY, JULY 15, 2009, 3:00 pm (EDT)
https://tns.webex.com/tns/j.php?ED=115455252&RG=1&UID=0

WEDNESDAY, JULY 22, 2009, 11:00 am (EDT)
https://tns.webex.com/tns/j.php?ED=115455562&RG=1&UID=0

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