According to Nielsen Canada, Canadians are seeking to get more for their money by clipping coupons, and, increasingly, taking advantage of deals found online.

Fifty four percent of Canadian consumers say they are motivated by coupons (Nielsen PanelViews Shopper Opinions Survey 2008) and this is showing itself at the checkout counter. Coupon use in the fast moving consumer goods (FMCG) industry has gone up for the past three years running:

• In 2007, 2.7% of units sold included coupon use
• In 2008, up to 3.3% (+19% change)
• By the end of the third quarter of 2009, up to 4.0% (+20% change). (Nielsen Homescan Market Summary, National All Channels, 52 weeks to September 26, 2009)

Younger shoppers are increasingly turning to the internet to delve out deals. Twenty three percent (+5) of respondents to the 2008 survey, and 41% of shoppers under 35 years old, indicated they view store flyers online.

What deals are being taken advantage of? Air fresheners top the list of FMCG categories consumers use coupons for. Other categories seeing a significant boost in coupon redemption include canned soup, pet food, vitamins, yogurt, pasta sauce, ready-to-eat cereal and hair styling products.

Canadians are looking for creative ways to stretch their dollar. When asked by Nielsen, 34% of Canadian consumers indicated that in order to spend less during the recovery, they would only buy when on sale. Using coupons came in a close second with 33% indicating this would be their approach.

• Switching stores (31%)
• Stocking up when on promotion (28%)
• Switching to store brands (28%)
• Shopping more at discounters (20%). (Nielsen PanelViews Economic Consumer Segmentation August 2009)

Most Canadians envision these behaviours will remain even once the economy recovers. When asked by Nielsen in October, almost half (49%) of consumers who had reduced their spending said they will continue to spend less. Thirty six percent believe they will increase their spend, but only 15% say their spending will return to pre-recession levels.

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