Report: Supermarkets Most Likely Place to Spend Gas Savings
Toronto As gas prices continue to drop, shoppers are choosing to spend these savings on groceries, according to a study from retail-analytics firm Precima.
In mid-July, pump prices were hovering around $4 a gallon. Today, those prices have dropped 57%. According to responses from 3,013 consumers, 48% of shoppers are investing the money they saved on gas on their household groceries.
For shoppers who have suffered a direct financial loss during the recession, 55% said they are spending gas savings on groceries. Fifty-nine percent of shoppers whose annual income is less than $35,000 are spending these dollars on groceries.
"Clearly this is a silver-lining for grocers in the economic dark cloud," said Brian Ross, general manager of Precima. "With relief at the pump, consumers are returning to some of the aisles they may have foregone in recent months, since many more are now eating at home more regularly. This presents real opportunities for grocers who target their strategies to meet the needs of cash-strapped consumers."
Meanwhile, 42% of consumers are putting those discretionary dollars into their savings; 37% are using the savings for holiday shopping; and 30% are paying off credit cards.