Port Washington, NY, November 11, 2008 – The NPD Group, Inc., a leading market research company, released the results of its latest Consumer Spending Indicator study (formerly Consumers Speak Out on the U.S. Economy), now in its 7th month.
The Consumer Spending Indicator reports where consumers say they are most and least likely to cut back their spending. In October, consumers said they were most likely to cut back on dining out (with 57% saying they planned to spend less), followed by apparel at 54% and entertainment at 50%. The least likely to be affected will be video games at 35%, toys at 39%, movies at 43%, beauty at 44%, and music 44%.
“Consumers are looking to spend less in the places they are able to find alternatives or ‘go without’ for now.” said Marshal Cohen, chief industry analyst, The NPD Group, Inc., “Things like eating out less or at less expensive restaurants or going another season with the coat or sweater you bought last year are examples of where consumer behavior is changing.”
The monthly survey also asks consumers if they plan to change shopping behavior to save money. In October, only 35% said they haven’t changed their behavior, a seven point decrease since April.
| Spending Behavior | ||
| April | October | |
| No Difference | 42% | 35% |
| Sales | 25% | 28% |
| Coupons | 23% | 27% |
“Each month one percent of our survey respondents decide to change how they shop, signaling there are lots of opportunities for the more progressive retailer,” said Cohen.
While consumers may intend to change how they shop, for now they are not changing where they shop. Forty-five percent of those surveyed said that current economic conditions will have no impact on where they will shop, compared to 44% in April.
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 approximately 800 total respondents. The October survey was fielded October 9th to October 16th, 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.