Blog Post 9 18

The spend or save dilemma: How today's shoppers make the choice

Blog Post 9 18

Recent market research has uncovered a paradox in consumer spending habits, where shoppers are seeking ways to save money and cut costs due to inflation, yet continue to invest in products they are loyal to, passionate about, or simply prefer for various reasons. These particular items appear to be resistant to the downward trend in spending that has been observed as the Consumer Price Index (CPI) has soared over the past two years. By utilizing the 84.51° Stratum and Real Time Insights platforms, a recent edition of the Consumer Digest offers a deeper understanding of this occurrence – identifying which items are and are not affected by the downward spending trend and more. We examine shoppers' preferences for national and store brands, identify the top products they're willing (and unwilling) to switch to store brands, and explore the reasons behind these choices.

National vs. store brand preferences

  • 8% Prefer National Brand

  • 29% Prefer National Brands but open to Store Brands

  • 17% No specific Brand preferences

  • 16% Prefer Store Brands but open to National Brands

  • 31% Prefer Store Brand

Top commodities shoppers “say” they are willing to switch to store brands, though here’s what they actually “do”*

  • Frozen (+3.8%)

  • Shelf Stable (+1.7%)

  • Household Cleaning (-2.6%)

  • Healthcare (OTC) (+2.7%)

*Parentheses contain the sales percent increased or decreased. Source: 84.51° Stratum last 52 weeks ending 8/14/23

Top reasons why: willing to switch to store brands

  • Quality is just as good

  • Store Brands offer variety/selection that meets my needs

  • Store Brands offer product size(s) that meets my needs

Spending on “better for you” products

Thinking of budgeting when shopping for groceries or household items, we asked:

AUG CD Chart 7

Read the full report to find out why consumers are not willing to switch to store brands, the top 10 items that are purchased as a treat, plans for football watch/tailgating parties and many other insights.

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