Shifting concerns
General concerns about the economy (55 percent) topped the reasons that consumers expect to spend less, followed by high prices for gas (50 percent), food (50 percent), and home energy (46 percent). However, these three inflation-related percentages are down significantly from 2008, when consumers largely attributed their reduced spending to these items.
Consumers cited additional reasons for spending less this year, with more than one in five respondents (22 percent) indicating a loss of job in their household and 17 percent expressing fears of job loss. Almost one-third (32 percent) said they are saving more, up 10 percentage points from last year, and one-third (33 percent) are paying down debt.
Those who said the economy was weak or in a recession represented 85 percent of respondents, down 10 percentage points from last year. Fourteen percent currently believe the economy is starting to recover.
Back to School spending with caution
With 90 percent of respondents indicating they will do their back-to-school shopping at discount/value department stores, consumers are continuing to watch their wallets closely. Among other places they will shop, 40 percent said dollar stores, 29 percent said office supply stores and 28 percent said off-price stores.
With seven in 10 (70 percent) of respondents saying that economic conditions will likely impact their shopping behavior, changes include:
In addition, almost one-third (32 percent) said they would buy more private label brands, and more than one-quarter (28 percent) will comparison shop online before buying.
When asked if they are likely to cut back on specific items, more than eight out of 10 (81 percent) said they plan to pare back on clothes and almost half (49 percent) expect to spend less on shoes. Almost one-third (32 percent) anticipate less going toward supplies and nearly the same amount (30 percent) intend to spend less on backpacks/book bags.
"In today's tough environment, retailers' principal marketing strategies should include coupons, sales and loyalty programs," said Janiak.
"And with more than three-quarters of shoppers expecting to do the bulk of their shopping in August, retailers can implement promotions now that may encourage customers to spend a greater share of the back-to-school budget in one place. Campaigns that are both strategic and creative, such as mobile alerts or coupons, can target a specific customer segment, better engage shoppers and build loyalty."
Green intentions
The survey pointed to consumers' continued interest in the green category. More than four in 10 (41 percent) survey respondents said they will likely seek out "green" products this back-to-school season, and more than three in 10 (31 percent) said they will likely seek out green retailers, both numbers remaining steady from 2008.
Said Janiak, "Given the importance of understanding what consumers value, retailers should consider how they might be able to capitalize upon the sustained interest from their customers in not just eco-friendly items but practices that define the company, such as store design, materials and energy efficiency."
For more information about Deloitte's Retail sector, please visit www.deloitte.com/us/retail.
About the Survey
The survey was commissioned by Deloitte and conducted online by an independent research company between July 6 and 9, 2009. The survey polled a sample of 1,044 consumers and has a margin of error for the entire sample of plus or minus three percentage points.
About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
NEW YORK, July 20, 2009 /PRNewswire/ --
