ShopperScape ® Snapshot Shopper Reaction to Payroll Tax Increase Modest and Measured April 2013

© Kantar Retail 2013 Source: Kantar Retail ShopperScape®, February Eat out at restaurants less often32% Use more coupons32% Cut back on small indulgences30% Cut back on more discretionary products30% Cut back on everyday expenses27% Buy less expensive versions of products24% Stock up when retailers have special deals on products I use 23% Purchase fewer “big ticket” items21% Do more shopping at retailers that offer good sales18% Do more shopping at dollar stores13% Postpone home improvement projects13% Do more shopping at Walmart10% 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 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. Rachel McGuire Two Easton Oval Suite 500 Columbus, OH T T F