Consumers are scaling back on food in recession
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He also pointed out the bright side: Purchasing power is actually increasing for some consumers, because mortgages, gasoline, automobile and food prices have gone down. You can find good buys on products when demand is down.
I was a amused when Hale mentioned that instead of going out, some families in Rhode Island were having "family night" once a week, where they all had dinner together and then played board games or other activities. He sounded as if this was such a novel idea that I was tempted to comment that a lot of Utahns have already been doing that for many years.
He got some chuckles when he noted that some people are "trading down" from Nieman Marcus to Nordstrom.
Other grocery trends:
Trading down from fresh to frozen or frozen to canned foods.
Depleting inventories in the pantry and restocking when there's a big sale.
Coupon use was up by 10 percent in 2008.
Some retail stores are staying afloat by cutting their assortment of products, so you will see fewer choices.
Food Network viewership increased dramatically in 2008, perhaps because people are trying to cook their own food, or because more people are turning to the TV for entertainment.
Alcoholic-beverage sales are up, but people are buying less-expensive labels.
Canning and freezing supplies are up by 14 percent, as people are thinking about preserving their own food.
Sales of desserts, toiletries and bottled water are down.
Sales of value products are up. "Spam, Dinty Moore Stew, ramen noodles, mac and cheese all had a big year," Hale said. "Basic fill-you-up food is doing well. If you've got a premium product, you've got to work harder."
The "better for you" segment of the food industry is having a tough time. Sales of organic food have declined. But some health-related products that are up are those that are omega-3, gluten-free, high fiber, no MSG, hormone-and-antibiotic free and reduced calorie. These products have to be strongly marketed.
More people are buying store brands, and this is a trend that will shape the future, he said.
Trends that are likely to continue after the economy recovers include "value" retailing, growing your own food and socking away more money in savings.
E-mail: vphillips@desnews.com
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