If there's one thing an American shopper could never claim to be lacking, it's options. For the entrepreneur, the sheer volume of options at a consumer's disposal can be extremely daunting when they consider a business to purchase. How does one break through and reach a consumer amidst all the shopping options?
We’re big fans of doing our homework here at Franchise Direct, and that’s why we’re happy to pass on this new Nielson study dissecting consumer dynamics. The study analyzes a number of metrics to come up with some mouth-watering findings for those pondering a franchise investment.
- Over the last 12 years, there has been a 19% increase in shopping at dollar stores ---it's hard to tell if this surge has been brought on by the decline of the economy, but it’s the biggest leap of any business category.
- The top three items purchased by high income households are wine, diet aids and floral/gardening equipment. Meanwhile, lower-income households more often turn to dollar stores.
- Spending at convenience stores and gas stations is down 12 per cent in the last 12 years.
- There has been a 2% increase in warehouse clubs, but this movement is almost entirely limited to western states.
Tom Pirovano, Director, Industry Insights at Nielsen, offered this insight:
“As consumers change their spending habits, both retailers and manufacturers are finding growth and profit opportunities by adapting their merchandising strategies to the changing retail landscape.”