Bulk of consumers change habits as recession tightens its grip

by Nadia Ghani, Brand Republic 04-Mar-09, 09:40

LONDON - Nearly 90% of consumers have made changes in their grocery shopping habits as a result of the economic downturn, according to new research.

Out of a thousand people surveyed by market research agency Shoppercentric, nearly a quarter have made major changes in their shopping habits.

These consumers are adopting an increasingly promiscuous approach towards retailers and will hunt around until they have found the best deal.

Shoppercentric predicts changing shopping habits might lead to fierce competition between "every day low pricing" and discount retailers, as they battle to win and maintain market share.

Out of the total sample, 40% are using stores that they did not previously, particularly Aldi and Lidl, and 57% are buying more own label products than they did before the downturn.

Dr Susan Rose, consumer behaviour expert at Henley Business School, says: "This research provides useful insights into shopper behaviour during today's recession.

"Changes include shifts in attitudes and a reconsideration of what is of value, which in turn results in actual adjustments in purchase behaviour."

Danielle Pinnington, managing director at Shoppercentric, predicts that the changes in attitude are likely to be here for the long term.

She anticipates that shoppers who have been forced to re-evaluate their previous frivolity will maintain a more stringent approach to spending after the recession loosens its grip.

Pinnington said: "The current situation is forcing shoppers to confront their past excesses and many of the cost cutting strategies they are learning as a result are likely to remain once the downturn ends."

Comments

dano - 04/03/2009

This article is misleading. 1000 people does not represent the bulk of consumers, and a quarter of these 1000 does not equal 90%, unless i am missing some maths?

Victor Guillen - 04/03/2009

This new trend will be affect to consumer companies like Unilever,Procter&Gamble,Nestlé,Kraft,Kellogg,Colgate,PepsiCo,Mars,GSK,Henkel,SC Johnson,Kimberly-Clark,Reckitt-Benckiser,Johnson&Johnson,Clorox,Cadbury etc.People will compare prices,sizes and promotions.Global companies will invest carefully on advertising to mantain their brand recognition and value perception.Now I'm going to think twice when I choose a Nescafé,Corn Flakes,Activia,Coca-Cola,Knorr,Sensodyne,Tylenol,Gillette,Loctite and other medium and premiun brands..