Precima Survey Reveals Overwhelming Number of Consumers Didn't Use Economic Stimulus...

Precima Survey Reveals Overwhelming Number of Consumers Didn't Use Economic
Stimulus Checks to Purchase Groceries
U.S. consumers ignoring inflationary pressures; Despite grocers' efforts,
stimulus checks not spent in the supermarket

TORONTO, July 22 /PRNewswire/ -- Despite rising food costs, low consumer
confidence and grocers' mass-marketing push to attract economic stimulus
spenders, approximately 84% of U.S. consumers in a nationwide survey said they
did not use the check they received from the federal government to purchase
groceries.
The survey was sponsored by Precima, a retail analytics firm that
translates consumer shopping data into critical market insights. It was
conducted during the first half of June by ICOM Information & Communications.
The survey results are based on a sample of 1,948 consumers. Of those,
1,317 said they had received their stimulus checks, and 1,106 said they did
not spend the rebate on groceries.
In other key results from the 1,106 respondents who said they did not
spend their rebate checks on groceries:
-- 82% said they've cooked at home more in the past six months instead of
spending at a restaurant;
-- 72% said they've made fewer trips to buy groceries in the past six
months;
-- 89% said they've shopped at the same grocery store for the past six
months.
"The grocery industry didn't convince the American consumer that maximum
return on stimulus checks could be achieved right in the supermarket aisles,"
said Precima General Manager Brian Ross. "The average family of four's $1,800
rebate equates to about three months of grocery buying, a prime opportunity
for stores to influence shopping behavior. The rebate checks were a missed
opportunity for grocers as consumers in this economic environment opted to
earmark the funds for other uses - paying down debt, spending on necessities
like gasoline and utilities or putting into savings."
Precima's scan of grocery marketing tactics in the second and early-third
quarters of 2008 reveal that grocers are primarily trying to mass-market or
implement gift card promotions in attempts to attract rebate spenders.
"Supermarkets are sitting on a wealth of aggregate inventory, sales and
customer data from frequent shopper programs. Instead of limiting their
promotions to gift card offers, grocers could have used loyalty data to
identify more relevant incentives for shoppers to spend their rebates at the
grocery store," added Ross.
Ross offers these tips for grocers to leverage their retail customer data
when developing promotional offers:
1) Develop compelling offers. In place of one-size-fits-all promotions,
analyze loyalty program data to identify store items that are most
important to cash-strapped customers and develop incentives that have
the greatest cost-saving appeal.

2) Help consumers during tough economic times. Support consumers' desire
for one-stop shopping and help combat rising fuel costs by providing
offers tied to saving gas and to larger basket sizes.

3) Help consumers eat at home. Capitalize on consumers' desire to save
money by eating at home with offers tied to convenience items that
replace take-out or restaurant meals.

The Precima survey was completed online between June 5 and June 16, 2008.

About Precima
Precima is an advanced analytics firm that translates retail customer data
into critical insights to better align marketing, merchandising and operations
strategies with shopper needs. Precima helps retailers and manufacturers grow
sales, improve profitability and build customer loyalty. As the in-house
analytics arm of LoyaltyOne (formerly Alliance Data Loyalty Services) prior to
2008, Precima worked with many of the leading retail partners of the AIR MILES
Reward Program over 16 years to help make the program North America's
coalition loyalty marketing leader. Additionally, Precima has worked with
numerous customer-focused retailers and manufacturers across North America.
Precima is recognized for delivering measurable results tailored to each
retailer's unique needs. For more information visit www.precima.com .
Contact: Jill McBridejill@jzmcbride.com or Will Sikeswill@jzmcbride.com
513-231-5115

SOURCE Precima

Jill McBride, jill@jzmcbride.com, or Will Sikes, will@jzmcbride.com, both for
Precima, +1-513-231-5115