Whole Paycheck. Sure, it’s a funny moniker, but it’s not really a joke. The stone cold truth is that many people believe natural products stores are expensive and serve only people with cash to spare.
But lower-income shoppers will spend $115 billion during the next decade, according to new SymphonyIRI research. That’s a lot of money at stake. How can you win them over to your store? Get to know who they are and how they shop.
They are diverse. Hispanics, African-Americans, youths (age 25-34), seniors (age 65 and older), and families with children are the key lower-income groups.
They shop more for less. Lower-income shoppers tend to shop more frequently but spend less per trip. They may be living paycheck to paycheck. Unlike higher-income shoppers, lower-income consumers are more likely to track their spending during shopping trips.
They value food. While lower-income shoppers have trimmed their purchases of clothing and shoes by 43 percent the past few years, they’ve actually increased spending on food and beverages and healthcare products by 27 percent to 31 percent, according to SymphonyIRI. Good news for you!
They get private label products. Interestingly, attitudes about private labels vary by segment. African-Americans seem to be the most brand-loyal, with 49 percent of them thinking that name brands are worth the extra cost. By comparison, only 29 percent of older lower-income shoppers think name brands are worth additional money.
The young are into specialty foods. Sixty-one percent of lower-income shoppers look for stores with ethnic/specialty foods versus only 48 percent for older shoppers, according to SymphonyIRI.
Not everyone eats healthy. Younger shoppers are less likely than older shoppers to think eating healthy is important. Older shoppers focus more on whole grains/high fiber foods, as well as products for weight management, whereas Hispanics focus on natural foods, super foods and protein-rich foods.
If you want to learn more about lower-income shoppers, check out SymphonyIRI’s webinar on the topic, as well as NFM’s future coverage of the topic. In the meantime, share below how you serve lower-income shoppers.