Asda chief says thrift is here to stay

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Wal-Mart-owned Asda has noted big shifts in spending habits by its customers, who have become more focused on low prices and limiting waste.

Shoppers are buying more home hair dye kits, freezing food and eating food past its sell by date, marking a return to more frugal times, according to Asda's chief executive, Andy Bond.

Bond said: "This is not a blip and we will return to where we were before. This downturn will shape a whole generation of consumers for whom frivolity is no longer acceptable and frugality becomes cool."

He added that sales of "gimmicky throwaway gifts" for adults had collapsed and that the most popular adult Christmas gift this year will be a jumper.

A survey of more than 2,500 Asda customers revealed that more than half of consumers are going out less and 40% are cutting back on visits to the hairdresser while there has been a 27% rise in hair dye sales indicating people are styling themselves at home.

It also revealed that 40% of people are ignoring best-before dates, 32% are freezing left over food and 40% are washing their clothes less in an attempt to lower household bills.

Ready meal sales have dropped by up to 40% at Asda as people choose to buy ingredients and cook from scratch instead.

Sales of bottled water and smoothies are also falling as consumers opt to drink from the tap and eat fruit.

Bond said that shoppers were focusing more than ever on low prices and criticised retailers that offer big one-off promotions and discounts.