A new Nielsen Canada study of the Canadian consumer marketplace has found that, in the aftermath of the global recession, shopper confidence is returning slowly and high prices are driving consumers to prioritize value. As a result, Nielsen has advised retailers to maintain their focus on promotions and offer consumers choice in terms of product size.
Survey by: Nielsen Canada
Methodology: Online survey of 500 Canadians in March-April 2011
Key findings:
• Nielsen’s Canadian consumer confidence index rose three points in the first quarter of 2011 compared to Q4 2010, settling at 102. Survey results indicated that the strength of the Canadian dollar and optimism about jobs and personal finances were the key factors in this increase.
• Despite an overall increase in confidence, respondents indicated concerns about rising gas and food prices – 12% cited rising food prices as their primary concern, while 11% said it was their secondary concern. 12% pointed to rising gas prices as their main concern, with 13% citing this as their No. 2 worry
• The average Canadian household is paying additional $71 per month as a result of gas prices that have risen 30% in the past year to as high as $1.41 per litre.
• 36% of products in the top 100 consumer packaged goods categories (which account for 75% of all CPG sales) have increased by at least 2% in the past year. 32% have decreased by at least 2%
• 51% of those surveyed believe they are still in a recession, a result driven by concerns about increased inflation and interest rates
• 70% of respondents reported only buying products that were on sale, 52% said they used coupons, 37% sought out large value packs and 34% shopped at discount retailers. 95% reported reading flyers and 70% said they were willing to switch brands based on lower prices
To view the survey findings, click here.
