Since mid-July 2008 when [image-nocss] the pump price of gasoline hit a record high over $4 a gallon, prices have dropped 57%.
The gasoline-to-groceries switch is even higher in certain key sectors. Among those survey respondents who said they have suffered a direct financial loss during the recession, 55% said they are spending gasoline savings on groceries, and for those whose annual income is under $35,000 the number is 59%.
Conversely, 34% of retirees said they are spending gasoline savings on groceries. The number fell to 29% for those whose annual income exceeds $100,000.
"Clearly this is a silver-lining for grocers in the economic dark cloud," said Brian Ross, general manager of Precima. "With relief at the pump, consumers are returning to some of the aisles they may have foregone in recent months. This significant trend builds on findings we uncovered in earlier research that showed that consumers are now eating more at home. These trends present real opportunities for grocers who target their strategies to meet the needs of cash-strapped consumers."
Nearly two-thirds of respondents said the recession is changing the way they plan their grocery trips, particularly in regards to pantry-loading. No less than 27% of consumers said they can no longer afford to stock up on food and now buy only what they need week to week. Another 35% said they stock up more than they used to, but only when items are on sale.
Of the 65% of respondents who said their stocking habits have changed, 5% said they stock up more, 54% said they stock up only when items are on sale, and 41% no longer stock up at all.
"Given the importance of winning the stockup trip in key center-store categories, this is a clear call to [grocery] retailers to look at pricing and promotional strategies for these items," Ross said.
Survey takers were asked about the factors that drive their choice of grocery stores. When queried about the grocery category most likely to make them switch supermarkets to get a better price, the results were 76% fresh produce, 72% meat and seafood and 71% dairy. The other switch-store choices included paper products (62%), canned foods (55%), snacks-beverage-candy (53%), convenience foods (41%), deli (39%) and baby products (15%).
Toronto-based Precima is a LoyaltyOne/Alliance Data company. Its November 28 to December 8 online survey of 45,000 households was conducted by ICOM Information & Communications. The survey is compiled from 3,013 respondents, 2,862 of which are drivers. Respondents are nationally representative of U.S. grocery shoppers.
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