OPERATIONS

Survey: Consumers still cutting back, just not on gas, pharmacy or grocery

BY Michael Johnsen

Toronto — That trip to the local restaurant is off the menu for consumers today, as are furnishings and electronics, Empathica reported on Thursday, citing its latest Consumer Insights Panel survey of more than 6,500 U.S. consumers. One-out-of-3 shoppers surveyed reported that the economy is still very much top of mind for them. But "need" items — gas, pharmacy and grocery — are not seeing declines in purchase intent compared to findings from this time the previous year, the report noted.

“The economy is affecting American consumers just as we expected with specific segments continuing to be challenged,” stated Gary Edwards, chief customer officer at Empathica. “The economy as a whole is still on the mend, and although we are starting to see an uptick in the job market, it doesn’t necessarily mean consumers are eager to spend. Uncertainty still remains among consumers with continued caution around spending on nonessentials.”


Survey results show that consumers are cutting the least on gas with nearly 9-out-of-10 consumers spending the same or more. When it comes to grocery, only 1-in-5 consumers reported a spending reduction versus 25% who expect to spend more. The survey also found that 1-in-4 consumers are cutting spending on pharmaceuticals, with 60% spending the same and 15% actually spending more.

Top segments where U.S. consumers are cutting spending include:

  • Fine dining (71%);
  • Furnishing (69%);
  • Electronics (65%);
  • Bars (64%);
  • Airlines (62%);
  • Hotels (61%);
  • Clothing (58%);
  • Department stores (55%);
  • Casual dining (50%);
  • Home improvement (49%);
  • Convenience stores (45%);
  • Quick service/fast food (42%);
  • Pharmacy (25%);
  • Supermarket/grocery (18%); and
  • Gas stations (16%).

The survey revealed that the top two reasons consumers are cutting spending include concern about taking on more debt and having to pay more for basic housing and utility costs, so there is less money to spend on other things. In fact, consumers’ top three areas of concern were the economy (31%), debt (25%) and job security (19%).

Despite financial difficulty, consumers are more optimistic on their financial situation when looking ahead. Results show that 1-in-3 consumers think their financial situation will be much better or somewhat better. Nearly half of consumers between the ages of 18 and 24 years have a positive outlook on their financial situation. However, this optimism declines consistently as we look across each age range, with only 19% of those older than 65 years feeling the same as their grandchildren.

“It’s understandable that older generations are more reserved with their discretionary spending,” Edwards said. “They have experienced several bouts of economic instability throughout their lifetime, while younger generations are more optimistic, technologically savvy and interested in immediate satisfaction. These factors showcase why this generation is eager to spend more on goods that will enhance their quality of life in the short term without necessarily worrying about longer-term retirement needs.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
OPERATIONS

Bill reverses right of New Jersey to claim unused gift card

BY Marianne Wilson

New York — A 2010 law that gave the state of New Jersey the authority to claim the value of unused gift cards as revenue has been repealed by the state’s Senate Budget and Appropriations Committee, according to the Newark Star-Ledger.

Two years ago, a law was passed that allowed unused gift cards to be included as part of New Jersey’s unclaimed property law, giving the state the authority to claim ones that went unused for past years. The law went unforced as it sparked a lawsuit from retailers. It also caused American Express and select other companies to pull its gifts cards from store shelves rather than comply with complicated regulations.

The new bill would also prohibit retailers from charging fees on cards used infrequently or placing expiration dates on their use, the report said.

keyboard_arrow_downCOMMENTS

Leave a Reply

M.Jackson says:
Mar-27-2013 02:36 am

I am glad to see that people are actually writing about this issue in such a smart way, showing us all different sides to it. You are a great blogger. Please keep it up. buy instagram followers buy twitter followers

M.Jackson says:
Mar-27-2013 02:36 am

I am glad to see that people are actually writing about this issue in such a smart way, showing us all different sides to it. You are a great blogger. Please keep it up. buy instagram followers buy twitter followers

M.Fourcall says:
Oct-17-2012 09:57 am

I am about to complete a university thesis on this topic and your post has helped me with the facts and figures I needed to accomplish it. Cheers! Jigsaw Academy

M.Fourcall says:
Oct-17-2012 08:21 am

I am interested in this topic and would like to find out some more information as my friend need information on this topic. Do you have any other articles about this? Snap edition

M.Fourcall says:
Oct-17-2012 09:57 am

I am about to complete a university thesis on this topic and your post has helped me with the facts and figures I needed to accomplish it. Cheers! Jigsaw Academy

M.Fourcall says:
Oct-17-2012 08:21 am

I am interested in this topic and would like to find out some more information as my friend need information on this topic. Do you have any other articles about this? Snap edition

R.Stoner says:
Oct-10-2012 12:55 pm

This will be a blow to the gift card users in New Jersey. I hope the bill is passed for the mutual interest of the people and positive outcome is expected from the bill. Thanks for sharing on this blog and I appreciate your good work. check this site

R.Stoner says:
Oct-10-2012 12:55 pm

This will be a blow to the gift card users in New Jersey. I hope the bill is passed for the mutual interest of the people and positive outcome is expected from the bill. Thanks for sharing on this blog and I appreciate your good work. check this site

M.Fourcall says:
Oct-06-2012 04:16 am

There are a lot of sites and articles out there on this particular point, but you have captured another side of the subject. This is good content thank you for adding it here. www.whichwaytopayusa.com

M.Fourcall says:
Oct-06-2012 04:16 am

There are a lot of sites and articles out there on this particular point, but you have captured another side of the subject. This is good content thank you for adding it here. www.whichwaytopayusa.com

palgipentior says:
Sep-26-2012 07:30 am

I like the way you described the topic with such clarity. This is something I have been thinking about for a long time and you really captured the essence of the subject. Companies Reviewed

palgipentior says:
Sep-26-2012 07:30 am

I like the way you described the topic with such clarity. This is something I have been thinking about for a long time and you really captured the essence of the subject. Companies Reviewed

pasbanhanr says:
Sep-25-2012 10:30 am

Your article has helped me to read this subject on a different level. I would like to thank your efforts for exploring this issue. Thank you for your information. Overhead door Vancouver

pasbanhanr says:
Sep-25-2012 10:30 am

Your article has helped me to read this subject on a different level. I would like to thank your efforts for exploring this issue. Thank you for your information. Overhead door Vancouver

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
OPERATIONS

Starbucks announces management changes to accelerate growth

BY Staff Writer

Seattle — Starbucks Corp. announced a series of management changes that it said it was undertaking to accelerate its innovation and growth. The changes come after Starbucks missed its global sales forecasts in April, mainly due to a downturn in Europe.

The company named Craig Russell, the senior VP U.S. Store Services, as senior VP of the Global Coffee division.

It also named Arthur Rubinfeld as the chief creative officer and president of Global Development and Evolution Fresh Retail division. Rubinfeld initially joined Starbucks in 1992, spending 10 years growing Starbucks retail presence from 100 stores to 4,000 stores around the world. He returned to Starbucks in 2008 to lead global store development.

In addition, Starbucks appointed Annie Young-Scrivner as executive VP and president of Starbucks Canada (the company’s largest market outside the United States). Young-Scriver previously held the title of global chief marketing officer. Starbucks said the global position will not be replaced since it has moved its marketing and category functions to the regional and market level in order to be more locally relevant.

“As we continue to sharpen our focus and strengthen our three-region operating model, local relevancy and speed of decision making are two critical requirements we must deliver so that we can seize opportunities,” said Howard Schultz, Starbucks chairman, president and CEO. “The leadership moves we announced today will enable us to more swiftly position ourselves for the exciting opportunities ahead while never losing sight of the fact that we are a global brand with a rich heritage in coffee, long-standing values, and the responsibility to use our scale for good.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...