Consumers behaviour changed says Nielsen report

The last six months of 2008 saw a dramatic change in consumer behaviour in Ireland, with overall spend down and shoppers turning in droves to discounters and private label goods

Since the onset of the downturn six months ago consumers have dramatically altered their shopping patterns, turning increasingly to discounters and private label

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A new report from the Nielsen Company has revealed that the last six months of economic slowdown has dramatically affected the behaviour of Irish consumers in terms of grocery shopping. According to the report, discounters Lidl and Aldi have achieved combined market growth of 40% since January 2008, mostly through attracting new shoppers or greater spend per shopper through their existing stores, the report states.

In addition, Nielsen also reports that a greater number of consumers are buying private label products, directly at the expense of branded goods which are, on average, 33% more expensive. The report says that private label goods are still under-developed in many product categories such as confectionery, bakery, alcohol, and health and beauty, and the recent recession-time growth has opened up many opportunities for the sector.

Commenting on the findings, head of marketing at Nielsen, Alan Purcell said: “There has been a significant decline in the overall level of consumer spending over the last six months. Our research shows how consumers have been responding to the recession in terms of the stores they visit, and the products they are buying. The report clearly shows that there have been some considerable changes in behaviour over the last six months.”

On the move to discounters by Irish consumers, Purcell says that the stores have attracted virtually no “preferrers”, or shoppers that choose them because they prefer them to other retailers. “Clearly the shift in spending patterns is being driven by the necessity of the sharply slowing economy,” he said.

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