News

Report: Loyalty to nationally advertised brands is falling

December 28, 2009

During the same period the percent of Americans who are "willing to pay more for nationally advertised brands" declined. The most dramatic drop (five points) occurred in the period between the first quarter of 2008 and the first quarter of 2009.

"At first glance this is troublesome news for U.S. retailers," said Diane Brewton, senior vice president of the Strategic Consulting Group at Decision Analyst. "The negative shift in loyalty to national brands coincides with the recession. As the economy trended down, consumers tried to save money by switching to less expensive alternatives. However, retail sales have stabilized enough to give us a basis for cautious optimism. Positive changes in consumer attitudes should translate into better sales for brand names going into 2010. The primary uncertainty is the long-term effect private label products will have on the branded products."