DOW JONES NEWSWIRES
Americans at all income levels are refusing to sacrifice
quality, value and nutrition, but the recession has led shoppers to
be careful about how they spend money.
On top of that shift, 60% of consumers said they will continue
to shop for the best deal after the recession ends, according to a
recent International Business Machines Corp. (IBM) survey.
Meanwhile, nine in 10 surveyed said value and nutrition will be
of equal or greater importance when the recession ends. Nearly half
said they were shopping at more stores in search of the best
deal.
While more than half of consumers polled are reducing the volume
of food they purchase from the grocery store, nearly two-thirds
said nutrition is still the most important factor they consider
when shopping. On top of that, consumers said they weren't willing
to give up items such as meat, poultry and coffee, while saying
they would cut back on buying prepared food, individual-sized
beverages and clothing.
Typically, prepared food items and smaller beverages are
higher-margin items. Some grocers - like Whole Foods Market Inc.
(WFMI) - have tried to respond to this shift by highlighting meals
that feed four people for $15.
IBM said more than a third of those surveyed said they were
choosing less expensive brands for health and beauty products
rather than sacrificing the purchases.
A shift to thrift has in many ways altered how consumers view
pricing, branding and value. For example, Target Corp. (TGT) has
seen shoppers switch to cheaper offerings at Wal-Mart Stores Inc.
(WMT), while Procter & Gamble Co. (PG) has seen consumers cut
back on its higher-priced products.
IBM's survey was based on phone interviews with 4,000
residents.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com