Industry Overview

Inflation, rising fuel prices and Consumer Confidence will challenge retailers in 2011. Where, why, and how consumers will shop will be impacted by their deal seeking levels, influenced by inflation, fuel and personal confidence. Marketing to their needs and abilities will maximize your results.

Spending has returned to pre-Recession ways in some verticals, but grocery shopping habits are not by any means. Savings rates (value seeking) and reluctance to use credit remain higher than pre-recession levels.

The Consumer

Consumer Confidence - directly linked to Consumer Spending - has returned somewhat from all-time lows (2009), but rising food and fuel prices damping true short term recovery.

Brand loyalty is being challenged as consumers increase their research on products and prices. Shoppers continue to research for best price, value and service. Friends and family (WOM) play a key role, as does the internet. Traditional use of ad inserts remains a key media influence among all generational groups. Coupon use remains at all time highs, and redemption continues to climb as well. Heavy Coupon users continue to outpace all other consuming households in terms of their value to the channel. And despite the growth in options, especially the internet, the FSI grew itâ€™s share of coupon distribution in the marketplace.

Sources: 2011 FMI, NCH, Valassis Internal

Please note: if more information / insights are needed, please contact a Valassis sales representative