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Customer Frugality Shows in Latest AMG Study

JACKSONVILLE, Fla. — Shoppers are clinging to frugal shopping habits, according to a new study from AMG Strategic Advisors here.

Among the findings from AMG’s new trade promotion study, “A Shift in the Lift: A Study of Key Factors Influencing Trade Promotion,” found that 67% of shoppers said they are “buying less and sticking to a budget.”

In addition, 54% said they are buying fewer items on impulse, 59% said more than half of their grocery purchases are bought “on deal,” and 65% said they expect certain items to be on sale and will wait for a sale to purchase them.

The study also reported that over the next three years, 75% of retailers will be either EDLP or some hybrid form of EDLP.

Manufacturers, meanwhile, are seeking to maximize the impact of their promotional spending, as 42% said they expect to spend more on long-term temporary price reductions, and 25% said they are shifting trade funds toward digital promotions.

Read more: Hispanic Shoppers More Optimistic: Report

“Shopping behaviors have fundamentally changed and shoppers are making fewer impulse purchases – and often expecting to find their favorite items on promotion,” said Carrie Shea, president of AMG Strategic Advisors. “Because of this, trade promotion is no longer generating the same level of promotional lift as it has in the past, and manufacturers must shift their trade promotion strategies to become better aligned with the changing marketplace. We will see trade promotion strategy continue to evolve as manufacturers increasingly realize the benefits of shopper marketing programs, digital and social media investments across the path to purchase, and new behavioral economic strategies.”

AMG is the research and consulting arm of Acosta Sales & Marketing, also based here.

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