In-store Deals Demand Down, Hopes for Discounts Up
Demand for in-store deals has plummeted as shoppers are highly expecting for discounted prices, according to the Deloitte/Harrison Group annual American Pantry Survey.
Harrison Group is a market research and strategy consulting firm headquartered in Waterbury, Connecticut, specializing in the wealth and affluent markets, and the media, financial management and interactive entertainment markets.
The survey, according to Deloitte, shows that for nearly one-third (30 percent) of consumers, at least seven of 10 items in their shopping cart is discounted.
Additionally, 80 percent of them say they do their own research and have a pre-determined price point and a potential savings amount in mind before they step into a store. Furthermore, two-thirds (66 percent) of consumers shop when they know products will be on sale.
“Shoppers today expect to get a deal on the products they purchase,” said Pat Conroy, vice chairman, Deloitte LLP and consumer products sector leader.
“With this mindset it is critical that consumer products companies take measures to enhance brand loyalty by connecting early and often with key audiences in environments outside of the store,” Conroy added.
Three-quarters (75 percent) of survey respondents say they are smarter shoppers than they were a year ago, and nearly nine in 10 (86 percent) believe they are getting more precise in what they buy.
In addition, eight in 10 (80 percent) consumers say they have become more efficient at getting in and out of the store in 2011.
“Smarter shoppers know what they want, and how to get it for the best price,” said Conroy.
“As they become more efficient – while the consumer products industry increasingly faces a ‘crisis of similar’ – companies looking to thrive must find ways to differentiate themselves from their competition.”
Nine in 10 shoppers know what they’re buying before entering a store, and more than eight in 10 (83 percent) have a set of brands in mind that they will consider, the survey shows. Moreover, eight in 10 (80 percent) shoppers indicate that the recession has caused them to realize what brands they care about and which ones they don’t.
“Companies should have a conversation with shoppers prior to the time of purchase,” said Conroy.
“With the proliferation of online shopping, smartphones and social networking, it’s vital that consumer product companies consider the use of highly targeted pre-store shopper engagement programs, which could include constant communication through new technology mediums.”
On the other hand, nearly one-half (49 percent) of shoppers say they are no longer interested in trying private labels or store brands.
Furthermore, nine in 10 (90 percent) shoppers assert that they have already figured out which store brands and private labels work for their families – and which ones do not – while nearly the same amount (88 percent) of consumers claim they have established which store brands and private labels are good, and which ones are not.