trends now

Spending Now

by Erinn Morgan

Every economic downturn has its windows of opportunity, and the current climate is no exception. Where are the silver linings? A look at the findings of a recent consumer report from Mintel, a leading global supplier of consumer, product, and marketing intelligence, reveals the hot spots in goods and services where consumers are spending their precious dollars.

The Mintel report looked at a variety of consumer spending categories, ranging from spending for food at home to spending in entertainment. A look into the results might just provide some insight for eyecare professionals on what to expect—and how to better reach out to their own customers.

FOOD AT HOME

While the majority of consumers indicated they were not spending any more this year for food at home, a large number have become cautious shoppers. In fact, 34 percent are eating more at home and are buying cheaper food. Over 50 percent usually use coupons and 54 percent watch for sales via newspaper ads.

According to Mintel, there are still a few key factors driving consumer spending. 1. Trust; 2. Creativity; and 3. Quality. Retailers and marketers who can deliver these confidence boosters can help consumers feel comfortable in making purchases, even in a trying economy.

FOOD AWAY FROM HOME

When it comes to spending on food away from home, however, a full half of consumers say they are spending less. Restaurants are working hard to entice customers with coupons, discounts, and new, healthy menu options.

VACATIONS

The current economy has spawned the era of the “stay-cation,” a cost-saving, stay-at-home vacation that keeps spending in check. However, a full 38 percent of survey respondents indicated they were not currently spending at all in the vacation category. More than half of all vacationers said they now compromise and spend more time bargain hunting.

ENTERTAINMENT AWAY FROM HOME

While consumers are cutting back in most areas, they still want to be entertained, and this is one area where they are opening their wallets. In fact, one third of consumers say they are spending the same or more than last year on this category, according to the Mintel report.

ENTERTAINMENT AT HOME

Likewise, half of consumers report they are spending the same or more on at-home entertainment (i.e., flat-panel TVs, gaming consoles, etc.). Best Buy reached out to consumers this year by creating a “new holiday”—they lowered prices on some top models to celebrate the start of football season.

HOME IMPROVEMENT

While more than two thirds of consumers have either cut back or are not spending at all on home improvement projects, this market is one forecasted to improve. Retailers are finding success by packaging offerings for easy selection. EB