PORT WASHINGTON, NEW YORK, August 13, 2008 – The NPD Group, Inc., a leading market research company, announces the results of its most recent monthly Fast Checks* Study: Consumers Speak Out on the U.S. Economy.
In July, 34% of consumers stated they would not change their purchase behavior; that is down from April when 42% said they would do nothing different. “This 8 point drop represents billions of dollars in sales that are not being injected into the normal shopping sectors for consumers.” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.
Another shift worth noting is where consumers tell NPD they plan to shop. In July, 41% of consumers stated that economic conditions would not affect where they shop. In April, that number was 44%. “This would suggest that we are starting to see signs that consumers are store and channel shifting,” said Cohen, “And it represents a huge opportunity for many retailers. Now is the time of year to make those all important ‘introductions’ to new customers and make overtures to an established customer base. We will see which retailers know how to make new friends and hold on to their old ones.”
| Channel Shifting | April | May | June | July |
| No Impact - will shop where I always shop. | 44% | 45% | 43% | 41% |
More consumers are feeling some ‘budget erosion’ due to gasoline and utility expenses. The number of survey respondents saying they are putting more money toward paying their gasoline and utility bills was 66% in July and 65% in April.
On the other hand, there hasn’t been much change in the number of survey respondents who say they are concerned about losing their jobs. That number has remained flat at 34%.
“This is a very important number to watch as it most directly reflects the state of the spending psyche of consumers,” noted Cohen, “As long as they feel comfortable about their continued employment, they will continue to spend.”
Methodology: The NPD Group fielded this study using Fast Checks*. This Fast Checks survey was fielded to a nationally representative sample of 2,000 men and women ages 18 and older. The data has been weighted. The data presented in this report was collected from 812 total respondents. The survey was fielded Monday, July 7th to Monday, July 12th, 2008.
*NPD’s Fast Checks surveys are quick, flexible, and budget-conscious online surveys.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com.