Results of Q3 2009 Grocery Shopper Study highlighting shopping behavior changes since the economic downturn

1. Grocery Shopper Behavior
Q3 2009
- Quarterly evaluation of shopper behavior today
- Changing shopper in the face of economic stress
November 2009

2. About Our Presenters
Jane Mount is the Executive Vice President of Digital Research, Inc. (DRI), a New England based
marketing research firm that focuses on new media research techniques for various Fortune 500
organizations.
Prior to joining DRI in 2000, Jane held research director positions with Nabisco Brands/The LifeSavers
Company, Philips Lighting Co., and Hannaford Bros. Co. Much of her work over the years has focused on
category management/sales research, advertising development and new product development.
Jane holds a B.S from Lehigh University and a MBA from Seton Hall University. She has been an active
member of the Marketing Research Association (MRA), serving on the professional certification review
committee. Jane was trained in focus group moderating at the RIVA Institute.
Debra Patek is Chief Economist & Cofounder of ThinkVine Corporation, a venture backed marketing
science solutions company based in Cincinnati, Ohio. Debra brings nearly 20 years of experience in the
areas of pricing research, economic analysis and consumer behavior modeling.
Prior to joining ThinkVine, Debra was a Director of Analytics at marchFIRST and a pricing strategist at the
L.M. Berry Company, a division of BellSouth. She has an M.A. in Economics from the University of
Cincinnati and taught undergraduate economics at the University of Cincinnati and Earlham College.
Debra has is a faculty member of the Professional Pricing Society and a member of the National
Association of Business Economists.
1

3. Recession Changing How Americans Spend
2

4. …And Retailers Are Reacting
3

5. What is Happening to Consumers’
Relationships with Brands?
4

6. What is the New Norm?
5

7. Objective
• The purpose of this study is continue to ascertain the current
economic mood of consumers and how the economy is affecting
grocery shopper behavior in the United States
– What behaviors have surfaced?
– What categories have been most affected?
– What is anticipated for the future?
– What are the expectations for holiday season?
• It also continues to track our new American grocery shopper
segmentation
• This is our second quarterly wave
6

8. METHODOLOGY
7

9. Methodology
• An online survey was conducted between October 20th and October 22nd,
2009 among 1,021 grocery shoppers.
– Nationally representative sample drawn from EMI Surveys Panel
– Questionnaire designed by Thinkvine and DRI
– Survey programmed and hosted by DRI
– Segmentation/advanced analytics by Thinkvine
• Seventeen grocery categories analyzed
– Milk, paper towels, bread, cookies, crackers, rte cereal, orange juice, salty
snacks, juice beverages, pasta sauce, yogurt, laundry detergent, soft
drinks, salad dressing, pet food, coffee, and OTC pharmaceuticals
• Cluster analysis identified six distinct segments of shoppers based on
economic impact, lifestyle changes and shopping behaviors
• Quarter 3 data weighted by age, income, and region for comparability with Q2
8

10. OVERALL FINDINGS
9

11. The Economic Climate is Viewed as
Relatively Weak, but Perceptions are
Improving
"Poor" 49% Q2 37%
“D-”
"Fair" 43% Q2 48%
"Good" 6% Q2 12% Improvement driven by younger
consumers
% Poor Q2 Q3
"Great" 2% 18 – 34 42 23
35 – 49 50 36
50 – 64 53 47
N=1021
Q4. What is your perception of today’s economic climate? 100-pt scale
10

12. ¾ of Shoppers Claim to be Negatively Impacted
by Today's Economy; Hardships Remain Largely
the Same as in Q2
Affects of Economy
Older shoppers facing income
reductions while helping out others
Income reductions 36%
Difficulty in paying bills 35%
Age 50-64 Q2 Q3
Income
Credit Card Debt 27%
31 40
reductions
Job uncertainty 27%
Financial
support to 12 17 Job loss/unemployment 22%
family Fewer experiencing
Investment losses 17% investment losses now
(17% vs. 23% Q2)
Financial support to family or friends impacted by economy 14%
Difficult access to credit 12%
Serious illness 11%
Home foreclosure/mtg issue 6%
Difficulty selling a house 5%
Other financial issues 3%
None of these 27%
N=1021
Q22. In the past six months, has anyone in your household been affected by any of the
following? Please check all that apply. 11

13. Many Shoppers View Their Current Economic
Situation Negatively; Yet Are More Optimistic for
the Future
5% 5%
10% 13%
26% 12% 15%
22%
34%
30% 44% 38% Great
38% Good
Fair
29%
40% Poor
39% 42%
30%
15% 12%
2 Years Ago 1 Year Ago 6 Months Ago Today 6 Months From
Now
N=1021
Q4a. If “100” represents your economic well-being during “normal times” (i.e. average for the
past few years), how would you rate your economic well-being for the following time periods?
Q4b. What do you expect your well-being to be six months from now?
12

14. In This Downturn 91% Have Made Changes
to Stretch Their Dollars
91%
41%
35%
15%
9%
Yes, I've m ade Yes, I've m ade som e Yes, I've m ade m inor No, I have not changed
substantial changes changes changes m y lifestyle
50+ have adapted most
(38% vs. 29% 18-34)
N=1021
Q5. In recent months, have you changed your lifestyle at all to stretch your dollars more? 13

15. Shoppers Are Not Just Reducing
Discretionary Spending, But Also Essentials
But concentrated on entertainment, clothing, and the everyday
Entertainment
expenditures
81%
Small cutbacks to
everday expenditures 81%
Clothing 79%
Vacations 65%
Large expenditures 55% More shoppers making cuts in
several traditional Holiday/Winter
categories:
Charitable giving 48%
Q2 Q3
Clothing 71% 79% 
Home maintenance 41%
Vacations 60% 65% 
Healthcare expenditures 36% Charitable Giving 42% 48% 
Healthcare 29% 36% 
N = 932 Made Changes
Q6. In what areas have you made changes? 14

16. A Return to Higher Levels of Spending is Not
Anticipated Through Q1 2010
51%
45%
4%
Y e s , I e xpe c t t o m a k e N o , I e xpe c t t o be s pe nding N o , I e xpe c t t o inc re a s e m y
a ddit io na l c ut ba c k s a bo ut t he s a m e s pe nding
N = 1021 15
Q7. Do you anticipate making additional cutbacks in the next six months? 15

17. Maybe a Little Loosening, but Shoppers Are
Not Planning to Resume Their Old Spending
Habits
49%
46%
4%
1%
I w ill continue to use m y I w ill spend a little m ore, I w ill return to m y Don’t know
saving strategies but try to be m ore previous spending habits
conservative than before
Willingness to spend a
little more has increased
(46% vs. 41% Q2)
N = 932 Made Changes
Q8. Once the economy improves, do you anticipate that you will continue to use the saving
strategies you are implementing to weather this tough economy or will you return to your previous
spending habits? 16

18. As in Q2, Shoppers Buy Needed Essentials –
On Sale/With Coupons or Thru Trading Down
I reduced spending on non-essential items 59%
I stock up on sale items 57%
I use more coupons/ promotions 52%
I reduced impulse purchases 50%
Make fewer trips to the grocery store 46%
Trade down to store brands 44%
Buying fewer convenience foods 40%
Rely on weekly circulars to decide where to shop 37%
Take advantage of rewards cards/programs 36%
Trade down to lower priced national brands 36% More trading down to
lower priced national
brands now
(36% vs. 30% in Q2)
N = 1021
Q19. In what ways, if at all, have your grocery shopping habits changed during this economic
downturn? Please check all that apply. 17

19. In Q3, Fewer Warehouse Clubs or Shopping
Around – More Cheap Meat
Shop at Dollar Stores more often 26%
Buy bulk sizes to get more value for the money 26%
Use the Internet to research products, prices, and find coupons 25%
Buy cheaper cuts of meat 20% Q2 24%
Shopping in more stores to get the best deals 26% Q2 22%
Shop at a closer store to save gas 22%
Switched to a lower priced store 20%
Buy less fruits/ vegetables 16%
Shop at Whse clubs more 19% Q2 13%
N = 1021
Q19. In what ways, if at all, have your grocery shopping habits changed during this economic
downturn? Please check all that apply. 18

20. Similar to Q2, Nearly Half of Shoppers Report
Spending Less on Groceries This Year
Focused on lower income/lower spenders
Avg. spending per week
$102 - a 6% decline
since Q2
Same
Less
42%
46%
More
12%
Q10. Is this about the same, more or less than you spent at this time last year?
19

21. Absolute Lowest Prices Continue to be a
Requirement for Today’s Shopper
Importance of Absolute Lowest Prices
77%
40%
38%
20%
2%
1%
5 - Extremely 4 3 2 1 - Not at all important
Important
N = 1021
Q14. How important is it for you to get the absolute lowest prices when you are grocery shopping?
20

22. …Coupons/Specials and Trading Down Brands
(to Store and Lower Cost National) Are Key to
Getting The Absolute Lowest Prices
Clip coupons 16.4
Buy only sale items 12.1
Switch to store brand 11.3
Shop at a store w/better weekly specials 11.2
Switch to lower cost brand 8.1
Compare store flyers 7.5  (8.7 in Q2)
Bag own groceries 6.6
In Q3, shoppers are less likely to
Browse Internet coupons 6.2 compare flyers and drive to multiple
Drive to multiple stores to get best deals 4.8  (6.0 in Q2) stores to get deals. In fact, they are
more likely to shop at an unclean store
Drive to store that is not the closest 3.3 to get the lowest prices.
Choose avg quality meat/produce over highest 2.9
Shop at a crowded store 2.0
Slow checkout 2.0
Poor selection of natural/organic 1.6
General poor selection 1.4
Shop at unclean store 1.2  (0.6 in Q2)
Poor customer service 1.0
Store has poor reputation 0.6
N = 988
Q15. Sometimes in order to get the lowest prices, you have to make some changes to how you shop. Please allocate 100 points across
these attributes based on how likely you would be to make these changes. Note: asked among those desiring absolute lowest prices.
21

23. All Categories Impacted by Changes in Purchasing
Behavior with Household Staples Being Targeted
Since Q2 (Milk, Bread, OJ, Laundry Detergent)
Percent Who Made Changes
Paper Towels 64%  12 pts
OTC Pharmaceuticals* 61%
Cookies 59%
Salty Snacks 58%  5 pts
Crackers 57%
Juice Beverages 57%
Salad Dressing 57%
Ready to Eat Cereal 56%
Laundry Detergent 56%  7 pts
Yogurt 55%  9 pts
Pasta Sauce 54%
Orange Juice 54%  5 pts
Bread 53%  10 pts
Carbonated soft drinks/soda 50%  6 pts
Milk 49%  12 pts
Coffee 49%  6 pts
Pet Products 45%
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of each of these categories? Response
options: I have made no changes, I only buy my preferred brand with a sale or coupon, I buy a different size of my preferred brand, I buy a lower priced national brand, I buy generics or store
brands, I buy my preferred brand in a lower cost store 22

24. Purchasing Changes Focused on Switch to Store
Brands and Purchasing Branded Items on Sale
Changes Made
Paper Towels 32% 15% 9% 4% 4%
OTC Pharmaceuticals* 41% 8% 6% 3% 3%
Cookies 21% 18% 11% 4% 5%
Salty Snacks 21% 17% 10% 5% 5%
Crackers 24% 16% 9% 4% 4%
Juice Beverages 16% 19% 12% 5% 5%
Salad Dressing 19% 20% 12% 3% 3%
Ready to Eat Cereal 17% 24% 8% 3% 4%
Laundry Detergent 15% 20% 13% 4% 4%
Yogurt 14% 25% 10% 4% 2%
Pasta Sauce 16% 17% 15% 3% 3%
Orange Juice 18% 18% 10% 4% 4%
Bread 29% 8% 8% 4% 4%
Carbonated soft drinks/soda 13% 20% 7% 5% 5%
Milk 33% 5% 6% 2% 3%
Coffee 10% 21% 9% 4% 5%
Pet Products 12% 12% 10% 5% 6%
Switch to store brand Preferred brand with sale/coupon Lower priced national brand
Different size of preferred brand Preferred brand from lower cost store
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of each of these categories? Response
options: I have made no changes, I only buy my preferred brand with a sale or coupon, I buy a different size of my preferred brand, I buy a lower priced national brand, I buy generics or store
brands, I buy my preferred brand in a lower cost store 23

25. National Brand Abandonment Has Increased
Significantly in Most Categories Since Q2 as a
Solution to Budgetary Crunches
Percent Who Purchase Generic or Store Brands
OTC Pharmaceuticals* 41%
Milk 33%  14 pts
Paper Towels 32%  17 pts
Bread 29%  15 pts
Crackers 24%  12 pts
Cookies 21%  7 pts
Salty Snacks 21%  11 pts
Salad Dressing 19%  10 pts
Orange Juice 18%  7 pts
Ready to Eat Cereal 17%  6 pts
Juice Beverages 16%  5 pts
Pasta Sauce 16%  6 pts
Laundry Detergent 15%  7 pts
Yogurt 14%
Carbonated soft drinks/soda 13%  5 pts
Pet Products 12%  5 pts
Coffee 10%
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of each of these categories? Response
options: I have made no changes, I only buy my preferred brand with a sale or coupon, I buy a different size of my preferred brand, I buy a lower priced national brand, I buy generics or store
brands, I buy my preferred brand in a lower cost store 24

26. In Q2, Changes Focused on Buying Preferred
Brands With Promotions; In Q3, Fewer Are
Holding Out for a Good Price on a Favorite Brand
Percent Who Only Buy Preferred Brand with a
Sale/Coupon
Yogurt 25%
Ready to Eat Cereal 24%
Coffee 21%
Carbonated soft drinks/soda 20%
Laundry Detergent 20%
Salad Dressing 20%  9 pts
Juice Beverages 19%
Cookies 18%  7 pts
Orange Juice 18%
Pasta Sauce 17%  7 pts
Salty Snacks 17%  8 pts
Crackers 16%  10 pts
Paper Towels 15%  4 pts
Pet Products 12%  4 pts
Bread 8%  3 pts
OTC Pharmaceuticals* 8%
Milk 5%
* Added to the survey in Q3 2009.
Q21. Now please think again about the specific categories that you purchase. In the past three months, how would you describe your purchasing of
each of these categories? 25

27. Value, Availability and Improved Quality Driving
National Brand Abandonment
“I buy more store brands now than I ever did since the recession
started, and I prefer them more now as they are comparable or
better than the national brands...I think the quality and price are
good, so I will continue to purchase store brands after the recession
as well. This I won't change - my philosophy is ‘Why spend more if
you don't have to?’”
Comment per Waggle Market Research Online Community. Q2 respondents participated as members of the
community following Q2 field.
26

28. 30% Shopping Supermarkets Less; Dollar Stores and
Mass Merchandisers Seeing More Activity
47%
38%
36%
33% 33%
30% 31%
29%
27%
22%
17% 17% 17%
12% 12% 11% 12%
9% 10%
7%
5%
2% 2% 1%
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Shop More Shop Less
N=1021
Q8a. Comparing your shopping habits to before the start of this economic downturn, would you say you are shopping
more, less, or about the same at each of the following types of stores?
27

29. Shoppers Relying on Cash/Debit; Utilizing
Credit Less
32%
28%
27%
25%
21%
13% 13%
6% 6% 6%
Cash Debit cards Credit cards Prepaid credit cards Checks
More Frequently Less Frequently
N=1021
Q8b. Think about the payment methods you use for your general purchases – such as cash, credit cards, or debit
cards. Would you say you are using each of these methods more frequently, less frequently, or about the same as
before the economic downturn?
28

30. Groceries Most Often Paid for in Cash/Debit;
No Change in Credit Card Use Since Last
Year
67% Grocery Payment Methods in Past Year
59%
38%
19%
13%
3%
Cash Debit cards Credit cards Check Food Prepaid credit
stamps/WIC cards
Grocery Payment Method: Change in Use 56%
(Among Users of each payment method) 54%
37%
34%
29%
26% 26%
21% 19%
14%
11% 11%
Cash Debit cards Credit cards Check Food stamps/WIC Prepaid credit
cards*
More Frequently Less Frequently
* Small sample size. Interpret with caution.
Q20a. What methods have you used over the past year to pay for grocery purchases?
Q20b. Are you using this method more frequently, less frequently, or about the same amount as you did a year ago? 29

31. For the Holiday Season, Shoppers Plan to Spend
Less in All Categories, Particularly Eating out,
Apparel, and Flowers/Cards
Net Decline in Purchasing (% less minus % more)
Eating out/dining 45%
Flowers/cards 41%
Apparel and accessories 40%
Jewelry 39%
DVDs/videos 37%
Comsumer electronics 35%
Computer hardware/software 34%
Music 34%
Event tickets 32%
Sporting goods 32%
Video games 31%
Toys 29%
Books 29%
Gift cards/gift certificates 23%
Groceries for holiday celebrations 16%
N=1021
Q21b. Now please think about your total purchases for the upcoming holiday season, and how much you anticipate
spending in each of the following categories. For each category, please indicate how much you will likely spend
compared to last year’s holiday season on a scale of 1 to 5 where 1 = “Spend much less” and 5 = “Spend much more.” 30

32. Shoppers This Year Plan to Either Maintain
or Decrease their Online Spending
41%
39%
20%
22%
16%
13%
7%
Will spend m uch Will spend a little Will spend about the Will spend a little Will spend m uch
m ore online this m ore online this sam e this season less online this less online this
season season season season
N=1021
Q21c. Now please think specifically about your online holiday purchases. Compared with the
total amount you spent online during the holiday season last year, how much do you estimate the
total amount you spend this year online will change? 31

33. NEW SHOPPER SEGMENTS
32

34. Who is the “New Shopper?”
The first wave of the Grocery Study introduced a New Shopper
Segmentation, which categorized shoppers by economic impact and
shopper response
 Economic Impact: the economic downturn has impacted different
people in different ways.
 Some people are only mildly impacted
 Others experience substantial hardship
 Shopping Response: different shoppers have reacted in different
ways to current economic conditions.
 Some shoppers are more active or aggressive in the response
to economic conditions
 Yet, others show a more passive or restrained response
33

35. Reintroducing the Six Segments
Along these two dimensions, cluster analysis uncovered six key
segments
Segment Economic Impact Shopping Response
Unfazed Mild Nonplussed
Cautious Comfort * Mild Cautious
Optimizer Moderate Strategic
Modest Means Moderate Restrained (or Resigned)
Hard Times Severe Hardship Struggling
Nouveau Poor Dramatic Reversal Floundering
* known as Cautious Success in wave I
34

36. The % of Unfazed remains largely unchanged,
with modest shifts observed in other segments
Segment Composition
Lifestyle
Segment Memberships
Response
Passive Active
Optimizer
Cautious Modest
14.3%
Distressed
Comfort Means
“Cautious “Optimizer”
Less
23.3% 30.5%
“Unfazed” Comfort” Strategically
balances brand, Unfazed
Hard Times
Passive response to Doing well, but 8.7%
convenience & NP 6.5% 16.7%
economic conditions keeping an eye on quality with
excessive spending affordability
Intensity of
Hardship
Q2 Q3
“Modest Means” “Hard Times” “Nouveau” Poor Unfazed
Tightening of the Struggling to make 8.3% 8.7%
Lifestyle upheaval
Distressed
belt for an already ends meet under Cautious Comfort
beleaguered dire economic after a dramatic 25.6% 23.3%
More
reversal of fortune Optimizer
shopper conditions 12.2% 14.3%
Modest Means 28.2% 30.5%
Hard Times 21.1% 16.7%
Nouveau Poor ** 4.6% 6.5%
** Although Nouveau Poor has a small sample size (n=67), its differences from other segments
are large enough to warrant its own segment. As the current economic “shock” begins to
subside, Nouveau Poor may fold back into other segments.
35

37. One quarter later, the economic numbers still
paint a grim picture
% households Impacted Cautious Modest Hard Nouveau
Unfazed Optimizer
(last six months) Comfort Means Times Poor
Income reduction 4.8% 24.4% 29.7% 42.7% 51.0% 61.0%
Job loss / unemployment 4.2% 14.8% 19.3% 28.7% 27.5% 39.4%
Job uncertainty 2.7% 21.5% 21.0% 28.3% 44.3% 39.2%
Difficulty in paying bills 8.4% 15.0% 17.6% 49.1% 55.2% 69.6%
Investment losses (e.g. stocks) 10.6% 15.2% 21.0% 17.9% 14.7% 31.7%
Serious illness 1.9% 4.5% 10.4% 15.3% 13.4% 16.7%
Credit card debt 6.9% 14.9% 14.7% 34.2% 44.6% 48.7%
Access to credit 0.9% 5.7% 2.5% 16.1% 15.9% 34.4%
Financial support to family or friends 3.4% 3.3% 10.3% 19.8% 17.1% 32.7%
Home foreclosure/mortgage issues 0.0% 1.4% 0.0% 6.3% 0.0% 60.3%
Difficulty in selling a house 1.2% 4.4% 0.0% 0.0% 0.0% 62.1%
Q22. In the past six months, has anyone in your household been Green font – significant improvement in condition since Q2
affected by any of the following? Please check all that apply. Red font – significant deterioration in condition since Q2
36

38. Nouveau Poor has experienced the steepest
perceived drop in economic well-being…and few
segments expect a full return
Economic well-being rating (50 = “normal” times)
70
65
60
55
50
45
40
35
30
25
20
2 Years Ago Year Ago 6 Mos. Ago Today Six Mos from Now
Unfazed Cautious Comfort Optimizer
Modest Means Hard Times Nouveau Poor
37

39. The Economy Prompting Degrees of Lifestyle
Adjustment Across Segments. Hard Times and
Nouveau Poor Report the Most Change
Lifestyle Changes in Past Six Months
Substantial Changes in Lifestyle Some Changes in Lifestyle
Minor Changes in Lifestyle No Changes in Lifestyle
9.6% 4.5% 3.1%
20.2%
23.2%
37.0%
39.8%
47.1%  12 pt
100.0%
64.7%
48.7% 72.3%
57.1%
43.3%
 10 pt  13 pt
14.3% 15.1%
 9 pt
Unfazed Cautious Optimizers Modest Means Hard Times Nouveau Poor
Comfort
Q5. In recent months, have you changed your lifestyle at all to stretch your dollars more? 38

40. Healthcare and Charitable donations have taken
a hit, especially among the “less impacted”
segments
% Reporting cutbacks in healthcare spending
59%
53%
42%
26%
17%
 10 pt  12 pt  6 pt
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
% Reporting cutbacks in charitable donations
67%
59%
52%
41%
35%
 7 pt  5 pt
 10 pt
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
Green font – significant improvement in condition since Q2
Red font – significant deterioration in condition since Q2
39

41. Absolute Lowest Prices are an Imperative for
Modest Means, Hard Times and Nouveau Poor.
Yet, Nouveau Poor Appears Less Resolved in Q3
Absolute Lowest Prices
% Rating Extremely Important
65%
48% 49%
32%
30%
16%
 20 pt
Unfazed Cautious Optimizer Modest Means Hard Times Nouveau Poor
Comfort
Q14. How important is it for you to get the absolute lowest prices when
you are grocery shopping? Green font – significant improvement in condition since Q2
Red font – significant deterioration in condition since Q2 40

42. For Grocery Categories, Brand Abandonment has
Accelerated Across all Segments, with Private
Label Gaining Ground
% of categories where “usual” brand still purchased
80%
60%
45%
36%
26%
20%
Unfazed Cautious Optimizer Modest Means Hard Times Nouveau Poor
Comfort
% of categories where alternative brand purchased
31.9%
25.9% 26.7%
16.9%
12.3% 10.6% 13.0% 10.7%
6.6% 8.4% 8.2%
1.8%
Unfazed Cautious Optimizer Modest Means Hard Times Nouveau Poor
Comfort
Store Brands / Generics % Categories
Lesser National Brands % Categories 41

43. Although Less Reliant on Promotions Than Other
segments, Cautious Comfort Shows Signs of
Increased Vigilance Compared to Q2
During the same time, Modest Means and Nouveau Poor have eased up
52.0%
38.0% 40.0% 38.0% 40.0%
26.0% 24.0% 23.0%
16.0% 18.0%
 24 pt
 6 pt  8 pt
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
Doing more research and comparison shopping
Using the Internet more frequently to research products...
74.0% 72.0%
67.4%
64.0%
58.0%
51.0% 49.5% 51.4%
30.2%
23.2%
 21 pt  8 pt  6 pt  21 pt
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
Rely more on weekly circulars to decide where to shop
Stock up on sale items 42

44. Hard Times and Nouveau Poor Show Less
Resolve in Q3 to Return to Old Spending
47% 45% 46% 46% 50%
46% 54% 48% 49%
48%
 9 pt  13 pt  12 pt
Cautious Comfort Optimizer Modest Means Hard Times Nouveau Poor
I will return to my previous spending habits
I will spend a little more, but try to be more conservative than before
I will continue to use my saving strategies
I don't know
Q8. Once the economy improves, do you anticipate that you will continue to use the saving
strategies you are implementing to weather this tough economy or will you return to your previous
spending habits? 43

45. In Conclusion…
• While news reports may have reported the end of the recession, this
economic downturn is far from over in the minds and behaviors of our
average American grocery shopper.
– Times are still hard for the average American
– And we're not out of the water
- while some leveling has occurred among those most devastated by this downturn,
others are newly entering this space
– Current perceptions of the economic climate is weak, but most see a more
optimistic future
– But . . . purchase behavior is changing
- Those who initially took a brand search strategy are seeking convenience by
abandoning brands and shopping cheaper stores
- Those new to cost cutting are adopting a brand search strategy (at least initially)
– And, we don’t see an intention to go back to previous behaviors
44

46. Recommendations
• Intervention is required by both grocery retailers and manufacturers to reinvigorate
their relationship with their customers
– Relevant product/service differentials
– Quality
– Focus on health/environmental sustainability
– Improved overall value proposition – based on good pricing
45

47. Key Demographics
Q3 2009 Q3 2009
(N=1,021) (N=1,021)
Gender Education
Male 21% High School graduate or less 23%
Female 79% Some College 29%
Age Associate’s Degree 12%
18 – 34 years of age 22% Bachelor’s Degree 25%
35 – 49 years of age 43% Graduate or Professional Degree 11%
50 – 64 years of age 35% Employment Status
Mean 44.2 years of age Employed full time 45%
Region Employed part time 14%
Northeast 22% Unemployed/Looking for work 14%
South 33% Unemployed by choice 17%
Midwest 26% Retired 10%
West 16% Annual Pre-Tax Household Income
Not specified 2% Under $75,000 65%
$75,000 and higher 30%
Prefer not to say 5%
Mean (estimated) $63,850
46

48. THANK YOU
Jane Mount
Executive Vice President
Digital Research, Inc.
Media Inquiries
207-985-7660 x121
jane.mount@digitalresearch.com Jeff Mills
VP Marketing & Client Engagement
ThinkVine Corporation
Debra Patek 513-477-1729 Office
Chief Economist & Cofounder Jeff.mills@thinkvine.com
ThinkVine Corporation
513-235-3823 Office
debra.patek@thinkvine.com
47