Promotional offers affecting buying habits

Research from Valassis has revealed that promotional offers are having an influence on the everyday buying habits of recession shoppers, with even wealthy AB consumers searching for bargains.

The research found that 31 per cent of consumers across all social classes are looking for promotional offers more than they were a year ago.

A rise in the general cost of living was cited by 26 per cent as the reason for them being more promotionally responsive, while 29 per cent said it was because food was more expensive, and 21 per cent stated it was because they have less money than a year ago.

The research proves that the appeal of promotional offers, and more specifically coupons, are not exclusive to consumers of lower social status, with AB consumers now seeking out more bargains than they were a year ago.

Indeed, 34 per cent of respondents from the AB social class bracket said that they now stock up on products when they are on promotion, while 29 per cent of AB consumers now buy more store-branded goods rather than mainstream brands.

In addition, 26 per cent of AB consumers are now careful to remember their coupons when going to the supermarket compared with a year ago, while 15 per cent of AB consumers are now shopping at discount supermarkets.

These findings highlight the impact that the recession is having on those consumers of a higher social class.

Last month, Waitrose - which is known for its 'home counties' customers - announced that more than GBP100m of products in the 'essential Waitrose' budget range had been sold since launching in March.

There is also increasing evidence of wealthy shoppers trading down from luxury goods for cheaper basics in discount supermarkets such as Aldi and Lidl.

In more general terms, when consumers across all social classes were asked what changes they had made to their shopping habits over the last 12 months, 36 per cent of respondents said that they now stock up on products that are on promotion when a year ago they did not.

In addition, 35 per cent buy more store-branded goods rather than mainstream brands compared with a year ago, while 30 per cent of respondents also said that they now shop at multiple supermarkets to get the best deals.

The proportion of people now shopping at discount supermarkets reached 23 per cent.

Coupon usage is also increasingly popular in the current economic climate.

30 per cent of respondents said they are now careful to remember their coupons when going to a supermarket, while 18 per cent claim they are using more coupons than they were a year ago.

The proportion of respondents that said coupons have influenced them to try new products was 38 per cent.

In total, 77 per cent of consumers said that they had used a coupon for supermarket shopping.

Charles D'Oyly, managing director of Valassis, said: 'We are in the middle of the worst recession in more than 50 years and people are increasingly worried about their job security, rising food costs, and whether they will be able to pay their bills every month.

'Against this backdrop, consumers are increasingly seeking out promotional offers as they carefully watch the pennies.

'Recession shoppers are far more likely to stock up on products that are on promotion, they will buy more store-branded goods and they will shop at multiple supermarkets in order to get the best price.

'All of this means that UK brands now have a fight on their hands to win new business and to retain their most loyal customers.

He added: 'UK brands must ensure that their promotional activity is based on a strong understanding of consumer attitudes in a recession in order to maximise annual spend and drive greater returns.

'Brand managers need to gain real insight into the way customers behave in response to promotional activity if they are to drive greater returns for their brands and deliver commercial gains to their board and shareholders.

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