U.S. Consumers Feel the Pinch

A new Nielsen study suggests that when food prices rise, convenience stores are one of the most vulnerable shopping channels.

October 10, 2013

CHICAGO – A new report by Nielsen reveals that rising food prices and lighter wallets have forced U.S. consumers to search for the best food values.

Among the highlights of the new study:

  • Americans report the lowest percentage globally (9%) of free spending money.
  • Thirty-nine percent of Americans describe their lifestyle as comfortable.
  • Forty-seven percent of Americans said they would shop more for private label brands when food prices increase.
  • Forty-eight percent of Americans said they would purchase common use items when they are on sale, citing a preference for unbranded cereal and produce.
  • Rising food prices will force 68% of U.S. consumers to cut back on dining out.

“While measuring the global middle class carries real-world implications, the broadest income classification is too low and the narrowest classification is too high to represent real-world buying potential,” said James Russo, senior vice president, Global Consumer Insights, Nielsen. “A more accurate measure is to look at consumer diversity, spending flexibility and the demand landscape in order to understand how to scale goods and services that meet the needs of consumers in both developed and developing markets around the world.”

Nielsen concluded that as a result of inflationary food prices, convenience stores, family-owned stores and specialty retailers are most vulnerable, while discount stores, clearance retailers and warehouse clubs are poised for success.

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