Turbulent Economic Times Changing Shopping Behaviors: Unilever Study
14 August 2008 - 3:00PM
Business Wire
More than 30 percent of consumers are eating at home more and
eating out less and 40 percent feel worse off than a year ago as
shoppers continue to grapple with managing their budgets during
uncertain economic times, according to a new study released today
by Unilever [NYSE: UL, UN], one of the world�s largest consumer
products companies. The study, Winning Shoppers in Turbulent Times
� A Unilever Trip Management Report, reveals how different
demographic groups will change their shopping habits as belts
continue to tighten during challenging economic times. �Consumers
are clearly feeling the effects of a perfect storm of challenging
economic events such as the mortgage crisis, stock market
volatility, and rising energy costs,� said Lisa Klauser, Vice
President of Consumer and Customer Solutions, Unilever U.S. �They
are reacting by taking a new approach to shopping as our study
found that quick trips to the grocery store are declining and major
stock-up trips that allow consumers to replenish their cupboards
for a long period of time are on the upswing.� Though consumers are
closely watching their budgets, they don�t want to give up on
product quality. According to the study, a majority of consumers
will continue to search out trusted brands across the store, with
most shoppers stating that they would not switch to a private label
to save money. Further, consumers would like manufacturers and
retailers to be creative in product packaging and sales approaches.
There were several shopper preferences including introducing larger
pack sizes, smaller package sizes at lower price points, and
modestly reduced package sizes with the same price point. The least
preferred option � the introduction of slightly lower quality items
with the same price point. �The reality is that consumers still
need to feed their families during these tough times. The challenge
for them is how to get it done in the most economical way possible
without sacrificing quality,� added Klauser. Additional key study
findings include: To help balance their budgets, 55 percent, 50
percent, and 41 percent of survey respondents stated they would
�reduce spending a lot� on entertainment, vacations, and clothing,
respectively; Shoppers are less willing to cut back their spending
on home heating/cooling costs, household necessities
(food/personal/home care items), housing (mortgage/rent, taxes,
maintenance expenses), and healthcare � only 18 percent, 14
percent, 8 percent, and 7 percent, respectively, responded that
they would reduce their spending significantly on these items; The
top two savings tactics used by shoppers include �only buy when
it�s on sale� and �use coupons whenever I buy this product�; The
top dozen categories shoppers will not abandon include (all are
above the 98 percent category level): anti-perspirant and
deodorant; batteries; canned vegetables; fresh meat and seafood;
hair care; household cleanser; laundry detergents; margarine; pain
relievers and cold medicines; personal wash; pet food; and tissues
and toilet paper; The top five categories where shoppers would
reduce their expenditure if the economy continues to struggle
include: air fresheners; cookies; beer/wine; frozen dinners; and
soda/pop. The Unilever study was based on a proprietary survey of
47,031 Nielsen households and was conducted between March 14, 2008
and April 3, 2008. The survey was then compared with shopper
behavior as measured among more than ten million shopping trips
taken by consumers during the year ending Q1 2008. The survey is
demographically and geographically representative of U.S.
households. Winning Shoppers in Turbulent Times builds on three
other successful Unilever Trip Management studies including, Trip
Management: The Next Big Thing (May 2005); Winning the Hispanic
Shopping Trip (May 2006); and Boomer Shoppers: Following the Money
(May 2007). To download Winning Shoppers in Turbulent Times, visit
http://www.unileverusa.com/ourcompany/aboutunilever/. About
Unilever Unilever�s mission is to add vitality to life. We meet
everyday needs for nutrition, hygiene and personal care with brands
that help people feel good, look good and get more out of life.
Each day, around the world, consumers make 160 million decisions to
purchase Unilever products. In the United States, the portfolio
includes major brand icons such as: Axe, �all,� Ben & Jerry's,
Bertolli, Breyers, Caress, Country Crock, Degree, Dove personal
care products, Hellmann's, Klondike, Knorr, Lipton, Popsicle,
Promise, Q-Tips, Skippy, Slim-Fast, Snuggle, Suave, Sunsilk and
Vaseline. All of the preceding brand names are registered
trademarks of the Unilever Group of Companies. Dedicated to serving
consumers and the communities where we live, work and play,
Unilever employs more than 14,000 people in�both the United States
and Puerto Rico � generating nearly $11 billion in sales in 2007.
For more information, visit www.unileverusa.com.
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