ShopperScape® Snapshot

Shopper Reaction to Payroll Tax Increase Modest and MeasuredApril 2013

© Kantar Retail 2013Source: Kantar Retail ShopperScape®, February 2013 2

Eat out at restaurants less often 32%

Use more coupons 32%

Cut back on small indulgences 30%

Cut back on more discretionary products 30%

Cut back on everyday expenses 27%

Buy less expensive versions of products 24%

Stock up when retailers have special deals on products I use

23%

Purchase fewer “big ticket” items 21%

Do more shopping at retailers that offer good sales 18%

Do more shopping at dollar stores 13%

Postpone home improvement projects 13%

Do more shopping at Walmart 10%

Do not plan to change my behavior because of payroll tax increase

35%

Awareness and Impact of Expiration of Social Security Payroll Tax Cuts(among shoppers who receive a paycheck, i.e., not retired or unemployed)

Have you noticed a difference in your take-home pay since the payroll tax increased?

How do you anticipate the payroll tax increase will affect your shopping/spending behavior?

© Kantar Retail 2013

Note: Among shoppers who receive a paycheck (i.e., not retired or unemployed)*“Have Nots” have an annual household income of less than $60k, “Haves” have an annual household income of $60k+.Arrows indicate significant difference between Haves and Have Nots (90% confidence level)

3

Have you noticed a change in your take-home pay since January?

Source: Kantar Retail ShopperScape® , February 2013

How will the lower take-home pay affect your spending and shopping behavior?

© Kantar Retail 2013 4

Haves (annual HH

income $60k+)

Have Nots (annual HH

income <$60k)

All Shoppers

Have & Have Nots: Percent of Shoppers Planning to Spend

About the Same or More(three-month moving average)

Source: Kantar Retail ShopperScape®, January 2009–February 2013

Near-Term Spending Plans, by Whether Noticed Change in Take-Home Pay,

February 2013

Arrows indicate significant difference between have and have not noticed change in pay (90% confidence level)

© 2013 Kantar. No part of these materials may be used, reproduced or adapted without the prior written consent of the copyright owner. All rights reserved.

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T +1.614.355.4000T +1.614.355.4036F +1.614.355.4059www.kantarretailiq.com