By George Anderson
Some got the wake up call before Hurricane Katrina. Now everyone's gotten it. Consumers are changing their shopping behaviors and just how they are going about their business is important for retailers looking to gain advantage in the current economic environment.
According to a study conducted by ACNielsen in June and July, well before Hurricane Katrina, consumers were combining errands, going out to eat less often and sticking closer to home as a result of higher gas prices.
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What impact, if any, has higher gas prices had on your household's driving and spending habits? |
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Impact |
Total |
Poor |
Getting By |
Living Comfortably |
Affluent |
|
Trying harder to combine errands/trips |
61% |
54% |
64% |
61% |
52% |
|
Eating out less often |
31% |
31% |
33% |
31% |
23% |
|
Doing more things at home rather than going out |
30% |
32% |
32% |
30% |
24% |
|
Switching to lower priced gas stations |
30% |
31% |
29% |
29% |
27% |
|
Reducing spending in other areas to small degree |
26% |
20% |
25% |
28% |
24% |
|
Shopping at more supercenters where everything we need is in one store |
22% |
23% |
25% |
22% |
15% |
|
Using coupons more often |
20% |
23% |
22% |
20% |
14% |
|
Buying less expensive brands of grocery items |
17% |
20% |
21% |
16% |
10% |
|
Using a lower grade of gasoline |
16% |
19% |
18% |
15% |
12% |
|
Reducing spending in other areas to a great degree |
10% |
15% |
12% |
10% |
5% |
|
Buying larger, economy size grocery item |
10% |
10% |
10% |
9% |
7% |
|
Shopping more at warehouse club stores where everything we need is in one store |
9% |
6% |
7% |
9% |
9% |
|
Shopping more on the Internet rather than visit stores |
5% |
3% |
4% |
4% |
7% |
|
Using public transportation more |
3% |
4% |
3% |
3% |
3% |
|
Considering/using a grocery home delivery service |
1% |
1% |
1% |
0% |
1% |
|
None of the above/no impact on driving and spending habits |
19% |
10% |
12% |
17% |
26% |
While the impact consumers felt from rising gas prices was proportionate to their household income, even affluent consumers were making adjustments. For example, 52 percent of affluent consumers said they were trying harder to cut down on the number of trips they made by combining errands. Only 26 percent of affluent consumers said the high price of gas was having no effect on their behavior.
In a released statement, Todd Hale, ACNielsen senior vice president, Consumer Insights, addressed the further price increases since the survey was conducted: "With the added economic uncertainty created by the disaster in New Orleans and other parts of the Gulf Coast, you can be sure that there are even more people now looking for ways to conserve fuel and reduce overall spending."
Hale believes the reality of the post-Katrina marketplace means retailers and consumer packaged goods companies will need to make adjustments.
"The most important need right now, of course, is for continued donations of products and cash. But there will be a longer-term impact as well, with opportunities for one-stop-shop retailers like supercenters and warehouse club stores to win the ongoing business of customers who are visiting their stores for the first time and for supermarket operators to play up the convenience of their store locations and the value of their take-home meals. Lastly, the fact that many consumers are doing more at home should spell opportunity for manufacturers whose products can enhance the at-home entertainment experience," he said.
Moderator's Comment: What impact, if any, has higher gas prices had on your household's driving and spending habits? What does this mean for retailers who want your business?
ACNielsen's survey was conducted among 37,000 members of its Homescan consumer panel. - George Anderson - Moderator