Study: Pressure at pump curbs spending
July 18, 2008
Schaumburg, Ill.—Nearly two-thirds of
U.S. consumers (63 percent) are reducing their spending due to rising gas prices, up 18 points since June 2007 and up 14 points in the last six months alone, according to new research from The
Nielsen Co.
Nielsen's research also finds that more consumers are combining shopping trips (78 percent), and more than half of consumers are now eating out less (52 percent) and staying home more often (51 percent).
"With gas prices passing the $4 per gallon mark, consumers are altering their driving and spending habits at dramatic levels,"
Todd Hale, senior vice president of The Nielsen Co.'s Consumer and Shopper Insights, said in a media release. "While discretionary spending is likely to be a challenge for most low- and middle-income shoppers, even affluent consumers are looking for ways to make their dollars go further."
Nielsen's research also shows that more consumers (35 percent) are buying less expensive brands, up 12 points since December 2007.
In addition, some consumers are shopping online and carpooling or using public transportation more often.
While the outlook for the remainder of 2008 and 2009 are certain to be challenging, Hale suggests that retailers can be creative, for their benefit and the benefit of their customers.
"Swings in fuel supply will continue to have a tremendous impact on consumer shopping and buying behavior," Hale said in the release. "Retailers can take a creative approach to promotions, pricing and partnerships, such as aligning themselves with gas retailers to reward loyal customers with less expensive gas, while manufacturers can minimize the impact of high gas prices by targeting products and advertising around at-home or at-work meals and at-home entertaining."
Study results are based on Nielsen Homescan survey responses from nearly 50,000 U.S. consumers, geographically and demographically representative of the total U.S. population. The survey was conducted during the first week of June 2008, when regular gas averaged $3.981.
The Nielsen Co. is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (
Billboard,
The Hollywood Reporter,
Adweek,
National Jeweler). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York. It is the parent company of the National Jeweler Network.
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