Recession has changed consumer food and drink purchasing behaviour 25/02/10
The recession has radically changed consumer purchasing behaviour and altered the dynamics of grocery retailing for the foreseeable future, according to the new report, Time for Dessert? Ten Emerging Trends in the Food & Drink Sector and How to Respond, launched by Barclays Corporate and Verdict Research. The report finds the growing difficulty of converting visitors to shoppers and the significant growth in shopping around, both in stores and online has become the ‘new normal'. It is now up to food and drink retailers, members of the supply chain and affiliated industries to adapt to this more austere consumer profile. These findings highlight the impact the recession has had on the sector in the UK and Ireland, what key sector trends are emerging for 2010, and how retailers can hope to drive growth. Commenting on the report's results, Richard Lowe, head of retail and wholesale at Barclays Corporate, said: "The recession has caused a major shift in how, where and when UK consumers do their grocery shopping. "While price will remain the defining issue for retailers, the sector is innovating in response to rapid change, embracing trends such as M-commerce (mobile phone retailing), the prioritisation of the convenience store format and the growth of online shopping and home delivery as new avenues for profit and growth." Daniel Lucht, from Verdict Consulting, commented: "While remaining high, we see price sensitivity retreating again from the heights of last year. This means that it will become increasingly important for grocers to offer a compelling price plus proposition from private label ranges to their online operations. What will matter most for grocers in 2010 is providing value to customers."
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