Higher gas prices could be advantageous to discount stores
NEW YORK — Rising gas prices has consumers cutting down on grocery shopping and many turning to the discount stores over traditional food retailers, according to the latest research from TNS.
The higher cost of gas is good news for discount stores, as 32% of those surveyed are choosing to shop there over traditional retail outlets. However, when they shop, they are buying less.
Thirty-five (35%) percent of those surveyed say they are trimming down and removing items from their "typical" grocery list to save money. Nearly one-third of consumers (30%) are more likely to purchase private label brands than national brands.
"Even as gas prices have receded a little from their peak, our research shows consumers are adjusting their grocery shopping patterns to manage a more uncertain conservative purchase environment," said Dan Boehm, SVP at TNS. "More than ever, grocery retailers need to clearly articulate the value proposition they give their shoppers as shoppers make fewer trips per week, buy less and look for discounts."