Value defining consumers: Nielsen survey

The latest Nielsen Global Online Survey, conducted in March/April by The Nielsen Company, showed that as household budgets continue to get the squeeze, consumers are turning to discount retailers.

Discount retailers gained share in all regions of Canada, capturing more than one-third (37 per cent) of grocery and drug category sales, an increase of four per cent over the previous year.

Results showed the greatest annual dollar outlay at discount stores comes from households that earn between $70,000–$100,000, spending $2,520; the biggest share of wallet spenders comes from households earning $20,000–$30,000 per year, with 34 per cent of their annual budget going to discounters.

Among survey results, top saving activities include: 70 per cent only buy when on sale; 52 per cent use coupons; 37 per cent buy larger value packs; 34 per cent shop at value retailers; 33 per cent stock up when on promotion; 27 per cent shop close to home; 18 per cent buy smaller sizes.

While Canadians surveyed remain for the most part optimistic, retailers and manufacturers have to cater to the pressure value consumers are feeling from rising food and gas prices through sustainable pricing strategies and creative options for price increases, such as new size formats.