'Good Value' Seals the Deal on Store Choice: Study

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'Good Value' Seals the Deal on Store Choice: Study

SCHAUMBURG, Ill. - Consumers across the nation and the world say "good value" is the most important factor in determining where they'll spend their grocery dollars, according to a new study released yesterday by The Nielsen Co. here.

Sixty percent of U.S. consumers rank "good value for money" as the most important consideration when choosing a grocery store, and 85 percent of global consumers agree, according to the Nielsen research. (Nielsen's research arm is a sister company to Progressive Grocer magazine, which is published by Nielsen Business Media.)

Nielsen's research shows that after "good value," 28 percent of U.S. consumers choose grocery stores based on the selection of high-quality brands and products, while 23 percent choose the grocery store that is closest.

Fourteen percent of U.S. consumers choose the most convenient store with easy parking, and nine percent choose a store based on its use of recyclable bags and packaging.

While these broad trends extend across markets, Nielsen found patterns vary as it digs deeper. "What shoppers demand from grocery retailers varies significantly across regions and countries," noted Todd Hale, s.v.p. of Consumer & Shopping Insights, Nielsen Consumer Panel Services. "[And] with increasing consolidation and globalization of the retail industry, it's crucial for retailers to understand how shopper preferences differ across markets."

For consumers citing "good value" as their most important consideration, Nielsen finds that price, promotions, and perceptions are most influential in helping consumers define value. Eighty percent of U.S. shoppers consider it very important or somewhat important for supermarkets to feature frequent promotions and price discounts, while 72 percent believe a store's reputation for delivering low prices -- even if, in reality, this is not the case -- is very or somewhat important.

Ranking third are prices published in the stores' leaflets (71 percent) and everyday low prices (70 percent.) Slightly less important to U.S. consumers are discounts for store card holders (63 percent), price comparison across retailers (59 percent), private label offerings (53 percent), and friends' recommendations (43 percent.)

In contrast to the habits of U.S. shoppers, Nielsen reported the following global trends:
-- Malaysian shoppers prefer supermarkets which offer the most convenient/easy parking.
-- South Koreans, Indonesians, and Germans like to shop at the supermarket closest to them.
-- Russians and Indians seek out supermarkets offering a better selection of high quality brands and products.
-- Filipinos and Singaporean shoppers top global rankings for placing the most importance on getting good value for money.