Business | Economy

Survey shows consumers postpone purchases

Consumers are spending only on sale items and some are postponing purchases altogether in the US recession, a recent survey shows.

  • Bloomberg
  • Published: 23:31 January 12, 2009
  • Gulf News

Consumers are spending only on sale items and some are postponing purchases altogether in the US recession, a recent survey shows.

Sixty per cent of US consumers are shopping solely for discounted products and two-thirds said they are delaying purchases or buying fewer items, according to a survey of 30,000 US consumers conducted by International Business Machines Corp.

The highest unemployment rate in almost 16 years and tightening credit are causing consumers to trim their budgets and reduce spending on non-essential items. Many shoppers are seeking out retailers that offer low prices, greater convenience or increased choices, according to the survey.

"Shoppers are calling the shots," said Fred Balboni, a retail industry specialist at IBM. The Armonk, New York-based company, the world's largest provider of computer services, offers consulting services to retailers.

Ninety per cent of those surveyed said they are reducing the amount they spend on discretionary items. Sixty per cent have cut spending on electronics, vacations, home improvement, sporting goods and home decor.

IBM asked consumers about their preferences for grocery, apparel, home products, pharmacy, and health and beauty products. Among others consumers said they preferred Costco Wholesale, Nordstrom and Target.

IBM's Institute for Business Value conducted the survey in September and November.

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