28 % Increase for Consumer Spending in Summer 2011.
May 27, 2011
Twenty-eight percent of consumers plan to spend more this summer, an 11 percent increase since 2010 according to the annual summer survey* conducted by Valpak. The consumer spending report issued twice a year by one of the leading direct marketing companies in North America also indicates little change over last year in consumers’ purchase intentions for the next six months, with one exception: consumers plan to spend more of their hard earned money on improving the interior of their homes. Responses around deal-seeking behaviors, such as coupon usage and private label purchases, however, continue to point toward post-recession consumers putting an emphasis on value.
Home Improvement Is Heating Up
When asked about consumer purchase intentions in a variety of categories including travel, automobiles and home electronics, the main focus this summer is on the family’s living space. Thirty-two percent of consumers are planning to spend money on interior improvements to their homes. This is an increase of one third over last year. Everything from new flooring and updated kitchen cabinets, to a total bathroom makeover are on the honey-do list this summer.
Rising Gas Prices Drive Consumers to Change Behaviors
The cost of gas hit an all time high this year, forcing consumers to keep a close eye on their spending behaviors. Two out of three consumers say they have changed the way they purchase, including how and what they buy as a result of high gas prices. Roughly 40 percent of consumers are searching for coupons and deals before leaving the house. One third of consumers have started buying generic brands as opposed to the name brand products they’re used to. In addition, consumers are making the most of their shopping time, resulting in fewer trips to the store.
Coupons Help Ease the Burn of Summer Spending
Consumers continue to seek out values when making purchases. In addition to the 40 percent of consumers who are searching for printed coupons before leaving the house, 41 percent say the search online for savings, including the use of mobile coupons and money-saving apps. According to a study by Juniper Research, in less than three years, over 200 million Americans are projected to have redeemed a mobile coupon. With Valpak’s coupon apps for iPhone™, Android™, Palm® Pre™, Blackberry®, and Microsoft Windows® Phone 7 smartphones, consumers have easy access to free coupons for local restaurants, retailers and service providers no matter where they are.
“Mobile coupons make saving money on the go quick, easy and available 24/7 from anywhere,” said Deanna Willsey, director of corporate communications at Valpak. “Valpak coupons are available via our own app, Junaio augmented reality app, as well as via SMS in many cities across the country. While it appears many consumers are looking for deals before getting in their cars due to rising gas prices, on-the-go mobile coupons can save gas money, too. There’s no need to print, clip or run home to grab the coupon when you want to grab dinner out on a whim. Simply display the offer on your phone and you save money.”
For more information at http://www.valpak.com