Press Releases

Archives (2005 to 2008)


	10/29/2008 Consumers to Open Their Wallets and Enjoy the Holidays, New IRI Survey Finds 74% Will Give the Same or More Gifts, 6 of 10 Will Give as Many or More Expensive Gifts; Shoppers to Increase Use of Promotions to Keep Up Appearances CHICAGO, Oct. 29, 2008 – Shoppers are tired of bad news and will open their wallets this holiday season, new research announced by IRI today reveals. Consumers also cited an increased importance of holiday rituals as they take comfort with friends and family and noted that they plan to make better use of merchandising and promotions to maintain appearances. IRI is the leading global provider of consumer, shopper, and market insights for the consumer packaged goods (CPG), retail, and healthcare industries. Among the principal findings of IRI’s new survey, “Rethinking Retail: Holiday Shopper Insights and Recommendations:” 94 percent state spending time with family is more important than last year 80 percent plan a greater emphasis on holiday meals and entertaining over last year 74 percent state they plan to give the same number or more gifts 65 percent will focus more on religious celebrations 63 percent plan to buy as many or more expensive gifts “We expect a consumer backlash this holiday season and a reverse of the misery effect consumers have felt this year,” says IRI Consulting and Innovation President Thom Blischok. “Shoppers have affirmed loud and clear they will continue their holiday rituals, but will temper their spending through increased use of merchandising and promotions. Santa’s sleigh will be full, but functional and affordable gifts will win out over discretionary gifts.” Shoppers Take Advantage of Promotions to Preserve Rituals Roughly three-quarters (74 percent) of shoppers will take more advantage of in-store promotions this year over last year, demonstrating shoppers’ desire to preserve rituals but their attempt to do so more affordably. Consumers also noted: 56 percent will take advantage of sales or promotions seen on TV or heard on the radio 53 percent will use coupons in newspapers more 43 percent will seek out more “2 for 1” and similar promotions “Shoppers are looking for ways to save money, while they preserve their holiday experience,” continues Blischok. “They are spreading out their spending to better fit their budget as well as taking advantage of early sales. They will be very creative in finding ways to save money. In addition to promotions, consumers will make better use of credit card or store reward points and utilize the Websites, blogs and social networking media to find deals.” Private Label Is What’s for Dinner on This Year’s Holiday Table More than two-thirds (69 percent) of shoppers will spend the same on holiday meals this year, and consumers will rely on private label more than ever before to preserve the holiday meal ritual: 91 percent will use at least some private label products to prepare their holiday meals 79 percent of those who will use private label products state they will do so to help them extend their budgets 51 percent will use private label products whenever possible Shoppers will turn to coupons and in-store promotions as well to extend their budgets, with 58 percent stating they will use newspaper coupons more, and the same number stating they will take more advantage of in-store promotions. “The consumer’s focus on private label this season both reflects their desire to keep up appearances on the holiday table and represents a significant opportunity for CPG manufacturers and retailers,” adds Blischok. “If positioned correctly, superstores and club outlets have the potential to use promotions to dominate this holiday season. Manufacturers and retailers must communicate effectively the new affordability equation— that affordability = satisfaction + usage + savings.” Recommendations for CPG Manufacturers and Retailers IRI recommends the following four critical strategies CPG manufacturers and retailers should implement to maximize the opportunities created by shoppers opening their wallets this holiday season: Identify and align on most important shopper groups: It will be more critical than ever to have quality ongoing shopper insights; manufacturers and retailers should focus 80 percent of their resources on these primary targets and just 20 percent on other groups. Ensure that market messaging is driven by telling a story about affordability as well as functionality: Deliver unique experiences to make targeted shoppers feel like manufacturers and retailers know their changing needs. Make promotions compelling: Develop imaginative ways to promote products and experiences—motivate vs. manipulate. Initiate merchandising and promotions now to attract those shopping early. Collaborate to maximize shopper share of wallet: Manufacturers and retailers should work together as never before and remember that “winning” is a function of the offering, timing, relevance and value to the shopper. 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 CONTACT: Shelley Hughes E-mail: shelley.hughes@infores.com Phone: (312) 474-3675 Fax: (312) 726-1091

Archives (2005 to 2008)

Consumers to Open Their Wallets and Enjoy the Holidays, New IRI Survey Finds