Press Releases

Archives (2005 to 2008)


	8/17/2009 Latest IRI Study Finds Shoppers Regaining Rationality; However, Price Still Rules Channel Migration Study Provides Insights into Recession-Driven Changes in Consumer Shopping Patterns across Departments, Categories and Consumer Segments CHICAGO, Aug. 17, 2009 - U.S. consumers have been battling adverse economic conditions for well over 18 months, and, to cope, they have been forced to make significant changes in how and where they shop. Gone are the days when shoppers selected retailers based on convenience, merchandising, promotions and affordability. Since shopper loyalty has become a much more complex subject, the latest IRI Times & Trends Report, "Channel Migration: The Blurring of Shopper Loyalty," provides insights into recession-driven changes in consumer shopping patterns across departments, categories and consumer segments. "When we studied channel migration last year, we uncovered sizeable share gains by supercenters across departments and income levels, since consumers were trying to stretch their dollars," says IRI Consulting & Innovation President Thom Blischok. "While supercenters are continuing to do well, we are also finding that competing retail channels have really been turning up the heat. From new everyday low price programs to expanding prescription drug programs, retailers are racing to deliver against consumers' rapidly changing needs and behaviors. This is certainly the time for both retailers and manufacturers to conduct frequent and granular consumer and market assessments and develop consumer-centric marketing strategies." When mortgage and financial markets weakened, and energy and food prices spiked, shoppers flocked to supercenters and focused on securing the lowest prices on everyday CPG solutions. During the last few months, as energy and food prices have declined and the economy has begun to show glimmers of hope, shoppers have calmed down and are, once again, reassessing their shopping attitudes, behaviors and strategies. Grocery, drug, dollar and other channel managers are intently focused on winning back shoppers. For many retailers, newly evolving strategies have been successful. Freed up by lower gas prices, three-quarters of today's consumers shop at five or more channels. The importance of winning with shoppers in an environment marked by rapid changes in purchase attitudes and behaviors is underscored by another trend—consumers are making more frequent visits, but the rate of basket growth has moderated. Still, some channels have seen particularly strong growth in per trip expenditures. The average dollar sale per purchase at dollar stores, for example, has grown five percent in the last year. Channels that don't react quickly to changing consumer attitudes and needs stand to lose significant business. "Even though shoppers are assessing their needs more rationally and are visiting a wide range of channels, they still view their purchases largely through price," adds Blischok. "This mindset is not lost on CPG marketers. In fact, several grocery retailers are focusing on an everyday low price format. Because increases in hiring typically trail recovery after a recession, IRI forecasts that price will continue to be a principle driver in shoppers' decision-making process after the recession ends." About the Report The IRI Times & Trends Report, "Channel Migration: The Blurring of Shopper Loyalty," is available from IRI, the leading global provider of consumer, shopper, and retail market intelligence and insights for the consumer packaged goods (CPG), retail, and healthcare industries. The findings of this report were compiled based on IRI Consumer Network™ and IRI Shopper Insights Advantage™. To download the report, visit http://us.infores.com/page/news/times_and_trends. 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. # # # IRI CONTACTS: John McIndoe E-mail: john.mcindoe@infores.com Phone: (312) 474-3862 Fax: (312) 726-1091 Shelley Hughes E-mail: shelley.hughes@infores.com Phone: (312) 474-3675 Fax: (312) 726-1091

Archives (2005 to 2008)

Latest IRI Study Finds Shoppers Regaining Rationality; However, Price Still Rules