Press Releases

CHICAGO, June 2, 2008 – With budgets strained to the breaking point by skyrocketing gas, energy and food prices, American consumers are feeling the pinch and are re-evaluating what they buy and where they shop. So, how do retailers and manufacturers compete in this evolving economy? A new thought-provoking IRI study, “IRI Times & Trends Special Report: Competing in a Transforming Economy,” examines the competitive landscape and delivers new insights into shifting consumer shopping and purchase behavior and resulting opportunities for CPG manufacturers and retailers.

“While analysts may disagree on whether or not the U.S. economy is in recession, there is no question that the economy is in transformation,” says President of IRI Consulting and Innovation Thom Blischok. “U.S. consumers have been hit on all sides with record-breaking gas prices, dramatic increases in grocery prices, high unemployment and declining home values. “

“These burdens,” continues Blischok, “are driving fundamental shifts in what consumers buy and where they shop. Consumers are forced to make tradeoffs. Competing in this new, evolving economy requires fine-tuned pricing, promotion, assortment and brand development strategies that are built on an in-depth understanding of a changing consumer in a transforming economy. The challenges of growing in this economy are significant, but there are windows of success. This IRI study reveals where those windows are and how to push them wide open.”

Transforming Insights to Action

IRI conducted an in-depth analysis of the current and projected economic environment and its consumer and market impact to provide manufacturers and retailers with a foundation for successful strategy development and refinement. This issue of “Times & Trends: Competing in a Transforming Economy” provides a high-level summary of key findings, including:

• Escalating prices have bred exceptionally high price sensitivity, driving declining demand across multiple categories, growth in private label, trial of lower-priced brands and accelerated channel migration
• Long-standing consumer purchase drivers, including convenience and health and wellness, are losing some momentum; consumers are foregoing ultra-convenience, and some shoppers are unable to afford healthier foods
• Consumers are increasing purchases of basic ingredients and meal components due to reduced restaurant spending and are decreasing purchases of “non-essentials”
• Changes in consumer shopping and purchase behavior vary widely by segment, such as income, presence of children and life stage

Industry Report

In addition to the Times & Trends study, a full report is also available that explores distinct trends by category, consumer segment, channel and market and identifies emerging opportunities and risks as well as recommended action items. The report is designed to help industry participants:

• Leverage best practice analysis and insight-driven action plans
• Gain competitive advantage through early identification of emerging market shifts
• Build strategies addressing distinct requirements by consumer segment, market and competitive threat
• Discover strategic pricing and promotion opportunities
• Understand new assortment, merchandising and distribution priorities

IRI is also offering the new IRI Economic Key Indicator™ Tracking service that provides an instant view of emerging market conditions, such as price and cost indices, category and private label demand shifts and share, trips and trip mission mix shifts across channels, with monthly and rolling quarter measures.

About the Report

The Times & Trends report, “Competing in a Transforming Economy” is available from IRI, the leading global leading provider of consumer, shopper, and retail market intelligence and insights for the consumer packaged goods (CPG), retail and healthcare industries. This thought-provoking study integrates findings from multiple sources, including IRI Economic Trend Database™, based on exclusive IRI AttitudeLink™ consumer survey, IRI Economic Shopping Behavior Longitudinal Database™, IRI Consumer Network™, IRI Economic Purchase Behavior Longitudinal Database™, IRI InfoScan® Reviews and IRI AllScan Convenience Store Tracking Service™.

To download the Times & Trends study, visit: http://us.infores.com/page/news/times_and_trends. For more information and pricing regarding the full report, “Competing in a Transforming Economy,” please contact Sheila McCusker at sheila.mccusker@infores.com or 860-668-4101.

About Information Resources, Inc.

IRI is the world’s leading provider of consumer, shopper, and retail market intelligence and insights supporting 95 percent of the FORTUNE Global 500 consumer packaged goods (CPG), retail and healthcare companies. Only IRI offers the unique combination of integrated market information, automated and predictive analytics, innovative enabling technologies, and domain expertise.  With IRI, leading retailers and manufacturers are able to quickly discover breakthrough insights driving smarter decisions and actions across the enterprise for breakthrough results. Companies around the world depend on IRI for improved productivity, stronger brands, and dramatic revenue growth. For more information, visit http://us.infores.com/.

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