U.S. Consumers got some much needed relief from record high gas prices during the fourth quarter of 2008, but a weak economy and historically low consumer confidence levels have shoppers sticking to the careful habits they put in place when gas prices skyrocketed.
During the first week of December 2008, the price of a gallon of regular gas was $1.81, down from $4.11 in July 2008 and $3.36 in December 2007. Despite the significant drop, Nielsen’s December 2008 Gas Price Impact Survey results show U.S. consumers are continuing to combine shopping trips and errands (77%, down one point from June ‘08), eat out less (57%, +5 points), stay home more often (50%, down one point) and reduce spending (64%, +1 point) at alarming levels—trends that are expected to continue through 2009.
When consumers do spend, U.S. households are looking for ways to save money—39% say they are using more coupons, 38% are buying less expensive grocery brands, 29% are shopping more at supercenters and 17% are buying larger economy sizes.
Households with mid-range incomes ($70,000–$99,900) are adjusting the most. They are 23% more likely than average to do more entertaining and activities at home, 12% more likely to buy less expensive grocery brands and private label, and 11% more likely to shop more at supercenters. In contrast, households with incomes over $100,000 are only 2% more likely to do more things at home and 16% less likely to buy less expensive grocery brands.
Those same mid-range households are also 27% more likely to use more coupons. Surprisingly, households with incomes under $20,000 are 44% less likely to use more coupons, partly because they are also less likely to have newspaper subscriptions.
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