Shoppers Feeling Optimistic, Are Willing to Splurge

IRI survey finds that 67% of consumers feel their financial health is improving and are willing to spend.

April 19, 2016

CHICAGO & WASHINGTON – Building off its IRI MarketPulse survey series, IRI announced that it is introducing the new quarterly IRI Consumer Connect survey to gauge consumers’ financial confidence and understand how their financial situation is impacting the way they shop for, purchase and consume consumer packaged goods products.

The inaugural Q1 2016 findings reveal that 67% of consumers feel their financial health will improve in the next six months, which is giving consumers the confidence to loosen their purse strings a bit and splurge.

These splurges, however, are not impulse buys made on a whim—they are more about making informed choices. For instance, 55% of these optimistic shoppers say they will pay more for food and beverage solutions that provide added benefits beyond basic nutrition, such as vitamins, minerals and extra protein. And 55% also will pay more for household cleaners made with environmentally friendly ingredients. In addition, 36% are regularly buying premium-quality beauty products, while 34% will pay more for environmentally friendly packaging.

IRI’s survey also drills down to the reasons consumers are choosing to shop in specific retail channels. Common features such as proximity, assortment and service will always play a key role in channel selection; however, consumers also are saying the following added frills are important or very important to their channel selection decisions:

  • 59% want a good selection of prepared/easy-to-prepare meals
  • 53% desire a good selection of local/artisan food and beverage options
  • 53% are looking for a variety of gourmet food and beverage options
  • 48% seek technology that makes shopping more exciting
  • 32% look favorably on stores that offer online purchase options with in-store pickup

While shoppers are making some splurges on specific products, they are still looking to keep their budgets in check for those everyday pantry items. For instance:

  • 60% buy bulk to get a lower price per serving/usage
  • 58% generally purchase the lowest-priced option when buying groceries
  • 49% will buy over-the-counter medications other than their preferred brand because it’s on sale
  • 42% often select food and beverage products that aren’t their preferred brands because they have a coupon
  • 39% will buy beauty and personal care products other than their preferred brands because they are on sale

Consumers adopted many different shopping behaviors to make their dollars stretch when the Great Recession began in the late 2000s. At the top of this list is making preplanned and deliberate shopping trips to save money. In fact, 82% of consumers still make a written shopping list. But it doesn’t stop there. Consumers also are taking the following measured steps to save a buck:

  • 75% buy private-label products to save money
  • 64% compare prices in circulars to find the lowest price on needed items
  • 52% visit multiple retailers to keep their grocery bill down
  • 51% compare prices on area retailers’ websites to find the lowest prices on needed items

“Knowing your consumers inside and out is the key to success for CPG retailers and manufacturers,” said Susan Viamari, vice president, Thought Leadership, IRI. “Consumers want a consistent and personalized experience. Making a quick sale is nice, but that won’t drive consistent growth. Building long-term relationships and loyalty is the best way to ensure success that starts today and continues into tomorrow.”

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