Some great numbers I gathered from NPD, Mintel and Iconoculture on the new frugality.
Consumers are following new budgeting habits
The need to follow a budget more closely is increasingly a concern for all, with 60% of all respondents (and at least half of respondents from all HH income groups) reporting that they are budgeting more this year than last year.
Across the board, younger shoppers are most likely to “always look for the cheapest product possible” (62% report doing so at grocery stores, versus 40% of all respondents) and to “often buy in bulk to save money” (32% at grocery stores, versus 25% of all respondents).
Younger shoppers also tend to eschew traditional retailers favored by older consumers, and head instead to the internet and electronics stores for their deals.
When it comes to food
NPD Group has reported that 45% of consumers were stocking up. 42% were cooking more at home and 31% were serving less expensive cuts of meat than they did a year ago. Additionally, NPD says that more than half of “financially concerned” consumers say they are trying to use up leftovers.
Though some consumers will not cut corners, many consumers are switching to less- expensive brands and private label to cut costs. Walgreens recently reported a 15% jump in sales of its private label.
But not necessarily everything is “tradable”
Consumers are less likely to look for bargains on hygiene and personal care items than they do for clothing and food, with brand loyalty higher for these products.
Increasing interest in thrifting
A trend that is likely impacting clothing sales is the one towards thrift store shopping. Sorting through the racks at thrift stores for cheap fashion finds has become popular among younger shoppers who consider wearing them a “badge of frugality.”
Pawn shops are doing well
The National Pawnbrokers Association says business was up nationally about 10% in 2008. But pawn shops that specialize in serving wealthy communities in Beverly Hills and Philadelphia say business was up as much as 40% (WSJ.com 12.30.08).
The NPA says the average household income of a pawnshop patron is $29,000, but that could be changing because even wealthy consumers are finding it difficult to secure traditional credit. AA Classic Windy City Jewelry & Loan, a pawnshop in Evanston, IL, has been seeing Cartier watches and Tiffany crystal come in through the doors.
Sources: “The Budget Shopper,” Mintel Reports, October 2008, “Even the Wealthy are Heading to the Pawn Shop,” Iconowatch, January 27, 2009
Born Curious 
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