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Nielsen: Financial restraint leads shoppers to search for deals

The global pandemic has had far-reaching consequences, one of which is the global economic ramifications that have resulted from lockdowns this summer. As consumers look to adapt to their new economic realities, recent data from Nielsen found that American shoppers are planning on altering their shopping habits in order to seek discounts, promotions and lower prices on their purchases.

In addition to searching for lower prices in-store, those who were surveyed by Nielsen in early July stated that they would go even further to stretch their dollars and make food more economical. When asked how they would respond should economic conditions worsen, 52% said that they plan to cook more frequently at home, 48% said they would deal shop, 46% said they will change stores to those with lower prices and 43% said they would rely more heavily on coupons.

These findings from Nielsen are not surprising as the US Consumer Confidence Index dropped 21 points between the first and second quarters of their year. This loss of confidence in the economy coincided with an increase in prices across grocery store categories. Nielsen noted that prices rose by 64% for 500 grocery store categories.

While consumers stocked up on non-perishable and shelf-stable items at the beginning of the pandemic, this hoarding behavior has mostly subsided. However, overburdened supply chains, limited trade between countries and a season where many global agriculture fields were left unharvested due to labor constraints have left the prices of many commodities higher than they were at the start of the year.

Coffee is one such commodity. Future prices for these caffeinated beans jumped 15% between April and May as consumers and companies stocked up on supplies and looked to head off disrupted harvests in Brazil and East Africa. Beef prices too skyrocketed in the U.S. as processing plants were forced to close and demand for the product was simultaneously rising.

However, not all prices are rising. Vanilla prices have declined steeply. Mintec data tracked the decrease from $650 per kilogram during the 2019 harvest season to $310 in February this year.

While the world continues to regain its footing and continue to cater to consumers, the Nielsen report suggested that retailers work to communicate strategies they are employing to push affordability at their stores. Additionally, the market analysis firm said that retailers should focus on communicating their safety protocols and precautions to those shoppers who are purchasing their groceries at brick and mortar establishments in order to encourage foot traffic.