Windows on shopping through the recession (Issue 04)

Page 1


CONTENTS

In our previous edition of Windows we took a first look at the trends emerging as the credit crunch evolved. Now that the UK is officially in recession we look at how shoppers are coping with the storm, the strategies they are adopting, and how retailers should look to capitalise on the fast changing shopper requirements.

W

elcome to another edition of

‘Windows’ - a series of online reports from shopper research specialists Shoppercentric. In each issue we research a hot topic of relevance to retailers and manufacturers and analyse the issues involved. This time we look at the impact of the developing economic storm on shopper attitudes and behaviours.

The extent of the effect on shoppers

4

Shopper strategies in the face of the recession

8

The long term impact

10

No one size solution fits all

12

Based on 1015 on line interviews among the main grocery shopper for each household we aim to provide a clear picture of exactly how the recession is impacting shopper behaviour right now and in the future, and how this might affect your business. This e-zine is designed to give you some of the overall themes and insights from our study. If you would like further information, please call +44 7977 579 076 or email: recession@shoppercentric.com

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Windows 4

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CONTENTS

In our previous edition of Windows we took a first look at the trends emerging as the credit crunch evolved. Now that the UK is officially in recession we look at how shoppers are coping with the storm, the strategies they are adopting, and how retailers should look to capitalise on the fast changing shopper requirements.

W

elcome to another edition of

‘Windows’ - a series of online reports from shopper research specialists Shoppercentric. In each issue we research a hot topic of relevance to retailers and manufacturers and analyse the issues involved. This time we look at the impact of the developing economic storm on shopper attitudes and behaviours.

The extent of the effect on shoppers

4

Shopper strategies in the face of the recession

8

The long term impact

10

No one size solution fits all

12

Based on 1015 on line interviews among the main grocery shopper for each household we aim to provide a clear picture of exactly how the recession is impacting shopper behaviour right now and in the future, and how this might affect your business. This e-zine is designed to give you some of the overall themes and insights from our study. If you would like further information, please call +44 7977 579 076 or email: recession@shoppercentric.com

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Windows 4

Windows 4

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The extent of the

effect on shoppers? W

Among our sample, 87 percent claimed they were making changes to their spending habits as a result of the economic downturn.

e’ve all seen the doom and gloom headlines about banks on the brink of collapse, retailers going into administration and businesses shedding jobs, but what’s really happening to the UK population - and how are they dealing with the economic downturn on a day-to-day basis?

At this point the majority of those (72 percent) who are making changes defined these as small changes, but as the economic situation develops it is likely that increasingly we will see more shoppers having to make larger changes to their shopping habits.

Our research showed that only 4 percent of main grocery shoppers in the UK believe they won’t be affected by the recession.

We have identified four key attitude groups among shoppers which we believe give a framework for understanding how far reaching the impact of the recession will be:

Given our interviews took place mid January after a slew of retail closures it is clear that the severity of the situation is hitting home.

4

Windows 4

1 Unaffecteds – 13 percent of shoppers who seem confident that their situation or their existing spending patterns mean they won’t be affected by the recession. 2 Planners – 15 percent of shoppers who haven’t been affected yet, but are making changes just in case.

Interestingly within our data we have picked up the gender divide that is emerging in unemployment figures – based on our attitude group definitions 16 percent of men can be described as Unaffected, compared to only 11 percent of women.

3 Soft Reactors – 48 percent of shoppers. These shoppers claim they have had to make changes to household spending because of the recession, but that so far these changes are small.

Furthermore women appear to be reacting faster to tightening their belts, with 50 percent of women falling into the Soft Reactor group compared to 46 percent of men.

4 Strong Reactors – 24 percent of shoppers. This is the group most seriously affected by the economic situation, and as a result are having to make major changes to their spending habits. They are also the group most likely to have suffered job losses.

Windows 4

5


The extent of the

effect on shoppers? W

Among our sample, 87 percent claimed they were making changes to their spending habits as a result of the economic downturn.

e’ve all seen the doom and gloom headlines about banks on the brink of collapse, retailers going into administration and businesses shedding jobs, but what’s really happening to the UK population - and how are they dealing with the economic downturn on a day-to-day basis?

At this point the majority of those (72 percent) who are making changes defined these as small changes, but as the economic situation develops it is likely that increasingly we will see more shoppers having to make larger changes to their shopping habits.

Our research showed that only 4 percent of main grocery shoppers in the UK believe they won’t be affected by the recession.

We have identified four key attitude groups among shoppers which we believe give a framework for understanding how far reaching the impact of the recession will be:

Given our interviews took place mid January after a slew of retail closures it is clear that the severity of the situation is hitting home.

4

Windows 4

1 Unaffecteds – 13 percent of shoppers who seem confident that their situation or their existing spending patterns mean they won’t be affected by the recession. 2 Planners – 15 percent of shoppers who haven’t been affected yet, but are making changes just in case.

Interestingly within our data we have picked up the gender divide that is emerging in unemployment figures – based on our attitude group definitions 16 percent of men can be described as Unaffected, compared to only 11 percent of women.

3 Soft Reactors – 48 percent of shoppers. These shoppers claim they have had to make changes to household spending because of the recession, but that so far these changes are small.

Furthermore women appear to be reacting faster to tightening their belts, with 50 percent of women falling into the Soft Reactor group compared to 46 percent of men.

4 Strong Reactors – 24 percent of shoppers. This is the group most seriously affected by the economic situation, and as a result are having to make major changes to their spending habits. They are also the group most likely to have suffered job losses.

Windows 4

5


Planners – 72 percent had no children in the household, and 62% had over annual incomes of over £29,000. The majority have noticed their household costs going up, and are planning for the worst in terms of the recession. Although still relatively low level changes, this group are making more changes than the Unaffecteds.

Whilst the actual spending changes of each group differs, it is likely that there will be fluidity between the groups. This means that as the economic downturn unfolds shoppers are likely to move from one group to another as their shopping habits adapt to the changing circumstances they face. The most likely direction of movement being from the Unaffecteds, at one end of the scale, through to the Strong Reactors at the other end.

Again there is a focus on price, but also on avoiding temptation, and economising by making meals from

Unaffecteds – 60 percent were men, and 82 percent had no children in the household. Also biased towards those aged over 55 and those with incomes over £29,000 per year, and those households without children. Although this group claims to be unaffected by the recession they are still making changes to their shopping habits, albeit at a lower level than the average.

scratch.

Soft Reactors – 40 percent had children in the household, and 59 percent had an annual income of over £29,000. Almost all have noticed an increase in household costs, and as a result are

making more changes than the average, even if they feel these changes

Their key changes focus around price sensitivity, which reflects the fact

are relatively small.

that they have noticed their household costs increasing, even if they appear to see this as a separate issue to the recession.

If this group does grow in size over the coming months then competition between the everyday low pricing and discount stores will be fierce as those retailers look to attract and retain this group.

The tactics they particularly favour include switching to Own Label brands, sticking to large main grocery shopping trips rather than top-up shops, being more price aware and avoiding both waste and temptation. In some respects, therefore, shoppers in this group are learning the basics of household financial management.

By understanding the economic impact from the perspective of the shopper it is possible to identify the likely changes in spending patterns as the recession continues, and in turn, plan for changes in shopper needs so that the retailers and brands can meet requirements.

Strong Reactors – 49 percent had children and 58 percent had annual incomes below £29,000. This is the group which is struggling to keep up with bills, and these shoppers

are using all the tactics they can to rein in their spending. They are also

most likely to demonstrate active shopping between stores in order to get the best deals or prices available.

6

Windows 4

Windows 4

7


Planners – 72 percent had no children in the household, and 62% had over annual incomes of over £29,000. The majority have noticed their household costs going up, and are planning for the worst in terms of the recession. Although still relatively low level changes, this group are making more changes than the Unaffecteds.

Whilst the actual spending changes of each group differs, it is likely that there will be fluidity between the groups. This means that as the economic downturn unfolds shoppers are likely to move from one group to another as their shopping habits adapt to the changing circumstances they face. The most likely direction of movement being from the Unaffecteds, at one end of the scale, through to the Strong Reactors at the other end.

Again there is a focus on price, but also on avoiding temptation, and economising by making meals from

Unaffecteds – 60 percent were men, and 82 percent had no children in the household. Also biased towards those aged over 55 and those with incomes over £29,000 per year, and those households without children. Although this group claims to be unaffected by the recession they are still making changes to their shopping habits, albeit at a lower level than the average.

scratch.

Soft Reactors – 40 percent had children in the household, and 59 percent had an annual income of over £29,000. Almost all have noticed an increase in household costs, and as a result are

making more changes than the average, even if they feel these changes

Their key changes focus around price sensitivity, which reflects the fact

are relatively small.

that they have noticed their household costs increasing, even if they appear to see this as a separate issue to the recession.

If this group does grow in size over the coming months then competition between the everyday low pricing and discount stores will be fierce as those retailers look to attract and retain this group.

The tactics they particularly favour include switching to Own Label brands, sticking to large main grocery shopping trips rather than top-up shops, being more price aware and avoiding both waste and temptation. In some respects, therefore, shoppers in this group are learning the basics of household financial management.

By understanding the economic impact from the perspective of the shopper it is possible to identify the likely changes in spending patterns as the recession continues, and in turn, plan for changes in shopper needs so that the retailers and brands can meet requirements.

Strong Reactors – 49 percent had children and 58 percent had annual incomes below £29,000. This is the group which is struggling to keep up with bills, and these shoppers

are using all the tactics they can to rein in their spending. They are also

most likely to demonstrate active shopping between stores in order to get the best deals or prices available.

6

Windows 4

Windows 4

7


Shopper

Strategies O

subtle change can result in the adoption of four strategies:

ne of the striking features of the changing spending patterns among shoppers in our sample is the number of tactics that they are adopting in order to deal with the situations they face. Perhaps

• Avoidance (87 percent of shoppers) cutting back on temptation / more planning of what they need before a shopping trip

the biggest difference between this recession and those of the past is that there are a number of ways shoppers can make changes to their shopping habits.

• Economising (92 percent of shoppers) being more price sensitive / looking for price cutting promotions • Prudence (86 percent of shoppers) avoiding waste / making things go further

Arguably it is easier than ever to cut back on spending in ways that suit our own individual or family needs, and our own view on which elements in our lives are necessities vs luxuries.

• Store Switching (84 percent of shoppers) avoiding expensive shops / going where the deals are

What it is important to understand is that shoppers’ needs are changing as a result of the various strategies they are adopting. Primarily they are now focused on buying what they need, rather than what they want – 82 percent of our sample agreed that they were ‘trying to avoid being tempted’. Within the last 6 months we have increasingly heard shoppers talk about how they check themselves when they look at tempting offers. “Do I really need it?” has

As the figures demonstrate, shoppers are not pinning all their hopes on a single strategy, but are using a range of changes to cope with “the worst economic downturn since the war”. If we take a closer look at these changes we can see two key behaviours emerging: • Passive choices – making choices based on what’s in the store the shopper is in. This is the approach most likely to be taken by those in least need of reducing their spending.

become a key mantra of shoppers in recession. At a more detailed level this

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• Active choices – choosing which store to use based on which will offer the best value. This is the approach typically adopted by those in most need of reducing their spending – 91 percent of Strong Reactors vs 68 percent of Unaffecteds. Some of the retail media reports have suggested that Active Shopping is on the increase, and certainly the greater marketshare being grabbed by discounters such as Aldi and Lidl is a signal of this. Based on our research however, it is clear that the fight between brands on the

shelf (and brands vs own label) is just as competitive as the price war currently taking place between the retailers – 57 percent of our sample agree

In some respects so much choice makes it harder to predict which categories will be affected by the down-turn, but on the positive side this means almost all categories have a chance to make a success of the situation. No wonder then that holiday companies are sounding more upbeat than we might have expected, especially when 2/3 of our sample claimed they were not going to be spending much less on their holidays this year.

that they are buying more own label products now than in the past as a result of the economic situation.

The diversity of shopper strategies being adopted means it isn’t as simple as predicting that quality brands will automatically suffer because they are the highest priced products on shelf. Instead it would seem that the value calculation is specific to individual categories, and in those categories where quality is tangible such as confectionery or beers & spirits, then the price of branded products may well be worth paying.

Manny Fontenal-Novoa, Thomas Cook chief executive, said: "Recent research and the high load factors we are currently experiencing give us confidence that consumers remain intent on taking their holidays.” Daily Telegraph, 2nd December 2008

This point again comes back to the fact that shoppers are making their own decisions on what are the necessities vs the indulgences in their lives.

Windows 4

9


Shopper

Strategies O

subtle change can result in the adoption of four strategies:

ne of the striking features of the changing spending patterns among shoppers in our sample is the number of tactics that they are adopting in order to deal with the situations they face. Perhaps

• Avoidance (87 percent of shoppers) cutting back on temptation / more planning of what they need before a shopping trip

the biggest difference between this recession and those of the past is that there are a number of ways shoppers can make changes to their shopping habits.

• Economising (92 percent of shoppers) being more price sensitive / looking for price cutting promotions • Prudence (86 percent of shoppers) avoiding waste / making things go further

Arguably it is easier than ever to cut back on spending in ways that suit our own individual or family needs, and our own view on which elements in our lives are necessities vs luxuries.

• Store Switching (84 percent of shoppers) avoiding expensive shops / going where the deals are

What it is important to understand is that shoppers’ needs are changing as a result of the various strategies they are adopting. Primarily they are now focused on buying what they need, rather than what they want – 82 percent of our sample agreed that they were ‘trying to avoid being tempted’. Within the last 6 months we have increasingly heard shoppers talk about how they check themselves when they look at tempting offers. “Do I really need it?” has

As the figures demonstrate, shoppers are not pinning all their hopes on a single strategy, but are using a range of changes to cope with “the worst economic downturn since the war”. If we take a closer look at these changes we can see two key behaviours emerging: • Passive choices – making choices based on what’s in the store the shopper is in. This is the approach most likely to be taken by those in least need of reducing their spending.

become a key mantra of shoppers in recession. At a more detailed level this

8

Windows 4

• Active choices – choosing which store to use based on which will offer the best value. This is the approach typically adopted by those in most need of reducing their spending – 91 percent of Strong Reactors vs 68 percent of Unaffecteds. Some of the retail media reports have suggested that Active Shopping is on the increase, and certainly the greater marketshare being grabbed by discounters such as Aldi and Lidl is a signal of this. Based on our research however, it is clear that the fight between brands on the

shelf (and brands vs own label) is just as competitive as the price war currently taking place between the retailers – 57 percent of our sample agree

In some respects so much choice makes it harder to predict which categories will be affected by the down-turn, but on the positive side this means almost all categories have a chance to make a success of the situation. No wonder then that holiday companies are sounding more upbeat than we might have expected, especially when 2/3 of our sample claimed they were not going to be spending much less on their holidays this year.

that they are buying more own label products now than in the past as a result of the economic situation.

The diversity of shopper strategies being adopted means it isn’t as simple as predicting that quality brands will automatically suffer because they are the highest priced products on shelf. Instead it would seem that the value calculation is specific to individual categories, and in those categories where quality is tangible such as confectionery or beers & spirits, then the price of branded products may well be worth paying.

Manny Fontenal-Novoa, Thomas Cook chief executive, said: "Recent research and the high load factors we are currently experiencing give us confidence that consumers remain intent on taking their holidays.” Daily Telegraph, 2nd December 2008

This point again comes back to the fact that shoppers are making their own decisions on what are the necessities vs the indulgences in their lives.

Windows 4

9


Long term

impact W

ith the economic situation developing on a daily basis, it would be unrealistic to attempt to make detailed predictions, but the decline in confidence over recent months has clearly made a significant impact on shoppers, and elements of that impact are likely to be long term.On the basis of the interviews we’ve conducted and the conversations we’ve had with shoppers over recent months, we believe one of the biggest long term impacts will be a less frivolous, more considered population. The current situation is forcing shoppers to confront their past excesses, and many of the cost-cutting

Linked to this rejection of the disposable society, we believe that the macro

trend around nostalgia will gain momentum through the recession.

This has been emerging over the last couple of years, being played out through the reforming of bands such as. Take That and the revival of brands such as Wispa. The emphasis being placed by some of the shopper groups we identified, as well as influential television personalities, on the need to cook meals from scratch, and learning to properly manage household finances within a budget, links in well with the desire for some of the simplicity of the past, and this may well be one of the more positive outcomes of the economic storm.

strategies they are learning as a result are likely to remain with them once the downturn ends.

In the UK, the Telegraph has an interview with Andy Bond, CEO of Walmart’s Asda Group, who, according to the story, “believes that the economic slowdown has transformed consumers and brought an abrupt end to the era of conspicuous consumption. People will no longer overpay on food, no matter what their income or social class. ‘There has been a fundamental shift that will see the emergence of a new breed of consumer, ’says Mr. Bond.”

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Windows 4

When discussing the credit crunch with shoppers over the Christmas period it was clear that the desire for a simpler, more traditional Christmas was gaining momentum. Rather than a good celebration being about the number of bottles of champagne on the table, families were looking for more down to earth ways to celebrate Christmas, triggered for some by the need to keep control of spending, but also a desire to rein in the excess of previous years.

A simpler, less excessive lifestyle, however, will mean that retailers and brands will have to be more competitive to stay in the game. Simply creating a brand, placing it on a gondola end with a strong promotion and hoping for the best will no longer be enough. Among our sample 27 percent agreed that they were using local shops more often. This could be the result of wishing to save on travel costs, but it could also be related to a growing feeling of the importance of ‘buying British’ and the desire to support local businesses. Buy British has been an emerging trend for some time, again as with nostalgia it could be a pattern of behaviour that is emphasised by the recession and becomes a long term feature of shopping habits as a result.

Windows 4

11


Long term

impact W

ith the economic situation developing on a daily basis, it would be unrealistic to attempt to make detailed predictions, but the decline in confidence over recent months has clearly made a significant impact on shoppers, and elements of that impact are likely to be long term.On the basis of the interviews we’ve conducted and the conversations we’ve had with shoppers over recent months, we believe one of the biggest long term impacts will be a less frivolous, more considered population. The current situation is forcing shoppers to confront their past excesses, and many of the cost-cutting

Linked to this rejection of the disposable society, we believe that the macro

trend around nostalgia will gain momentum through the recession.

This has been emerging over the last couple of years, being played out through the reforming of bands such as. Take That and the revival of brands such as Wispa. The emphasis being placed by some of the shopper groups we identified, as well as influential television personalities, on the need to cook meals from scratch, and learning to properly manage household finances within a budget, links in well with the desire for some of the simplicity of the past, and this may well be one of the more positive outcomes of the economic storm.

strategies they are learning as a result are likely to remain with them once the downturn ends.

In the UK, the Telegraph has an interview with Andy Bond, CEO of Walmart’s Asda Group, who, according to the story, “believes that the economic slowdown has transformed consumers and brought an abrupt end to the era of conspicuous consumption. People will no longer overpay on food, no matter what their income or social class. ‘There has been a fundamental shift that will see the emergence of a new breed of consumer, ’says Mr. Bond.”

10

Windows 4

When discussing the credit crunch with shoppers over the Christmas period it was clear that the desire for a simpler, more traditional Christmas was gaining momentum. Rather than a good celebration being about the number of bottles of champagne on the table, families were looking for more down to earth ways to celebrate Christmas, triggered for some by the need to keep control of spending, but also a desire to rein in the excess of previous years.

A simpler, less excessive lifestyle, however, will mean that retailers and brands will have to be more competitive to stay in the game. Simply creating a brand, placing it on a gondola end with a strong promotion and hoping for the best will no longer be enough. Among our sample 27 percent agreed that they were using local shops more often. This could be the result of wishing to save on travel costs, but it could also be related to a growing feeling of the importance of ‘buying British’ and the desire to support local businesses. Buy British has been an emerging trend for some time, again as with nostalgia it could be a pattern of behaviour that is emphasised by the recession and becomes a long term feature of shopping habits as a result.

Windows 4

11


No one-size mechanics they can use to persuade shoppers to visit their stores or choose their products from the shelf. And the smart businesses will work out which mechanics will get the right result as cost effectively as possible. This means really understanding the shoppers and their needs.

W

hat businesses need to understand is that shoppers are looking for support through the bad times, and it is the retailers and brands that provide them with that which will be rewarded during and after the recession.

Positivity is starting to take root, and one of the biggest mistakes businesses could make is to assume that austerity is the answer.

In this last article we turn our thoughts to the implications of the changing shopper attitudes for businesses. The support given by retailers and brands to shoppers will be rewarded during and after the recession with repeat business and customer loyalty.

looking for a pleasant shopping experience regardless of the prices they are paying for the goods. This has considerable implications on retailer budgets, overall, and during key seasonal periods. On a purely psychological level, why would a shopper be encouraged to spend money in a dreary store when they’re feeling the pinch in their purse? It just serves to reinforce the negative situation and certainly won’t inspire the customer to shop there once their finances change.

Shoppers are not looking for store environments designed by “Scrooge Ltd”. In fact shoppers are

It’s not purely about low prices, it is also about ideas and inspiration on how to cope with the downturn, and being positive in the recession helping take shoppers minds off the situation.

Clearly price is one mechanic for meeting shopper needs, but price is no longer the be all and end all of shopper decisions even in a recession. This is evident in the number of strategies shoppers are adopting beyond price point. Retailers and brands that want to maintain sales will look at all of the possible

The launch of ‘Dine in for £10’ meal solutions picks up on the need for ideas, whilst helping shoppers feel they are still able enjoy indulgent moments.

12

Windows 4

“You hear a lot of nonsense talked about what customers want and what they might do. But the only way to find out is to go out, talk to them, and find out what they really want from you” Sir Geoff Mulcahy, ex-CEO of Kingfisher, Mail on Sunday 28th October 2008. thinking businesses will be looking beyond price towards innovation – in terms of the products they deliver, but also how they deliver them in-store. And let’s face it, changing how or what you communicate to shoppers is a lot quicker, cheaper and easier to implement than the average TV advert or new product launch.

Let’s be clear - none of this is easy. But it is only by taking positive steps that businesses will make the most of a difficult situation. The environment in which people choose whether to take your product off the shelf, or not, is exactly the environment in which businesses have the best opportunity to maintain or increase their sales. Forward

In a number of the commodity categories the brand vs own label ‘war’ is raging, and in these categories the brands must re-think how they present themselves, and what are the factors that will persuade a shopper there is a tangible difference between the quality provided by the brand vs the own label. In other categories the risk comes from the fact that the category has slipped off the shopper agenda, or is considered too much of an extravagance. Taking a step back and looking at how the category can re-position itself in order to generate interest and consideration will be key in ensuring the category survives the downturn. (To find out more about the implications for different categories contact Shoppercentric)

Windows 4

13


No one-size mechanics they can use to persuade shoppers to visit their stores or choose their products from the shelf. And the smart businesses will work out which mechanics will get the right result as cost effectively as possible. This means really understanding the shoppers and their needs.

W

hat businesses need to understand is that shoppers are looking for support through the bad times, and it is the retailers and brands that provide them with that which will be rewarded during and after the recession.

Positivity is starting to take root, and one of the biggest mistakes businesses could make is to assume that austerity is the answer.

In this last article we turn our thoughts to the implications of the changing shopper attitudes for businesses. The support given by retailers and brands to shoppers will be rewarded during and after the recession with repeat business and customer loyalty.

looking for a pleasant shopping experience regardless of the prices they are paying for the goods. This has considerable implications on retailer budgets, overall, and during key seasonal periods. On a purely psychological level, why would a shopper be encouraged to spend money in a dreary store when they’re feeling the pinch in their purse? It just serves to reinforce the negative situation and certainly won’t inspire the customer to shop there once their finances change.

Shoppers are not looking for store environments designed by “Scrooge Ltd”. In fact shoppers are

It’s not purely about low prices, it is also about ideas and inspiration on how to cope with the downturn, and being positive in the recession helping take shoppers minds off the situation.

Clearly price is one mechanic for meeting shopper needs, but price is no longer the be all and end all of shopper decisions even in a recession. This is evident in the number of strategies shoppers are adopting beyond price point. Retailers and brands that want to maintain sales will look at all of the possible

The launch of ‘Dine in for £10’ meal solutions picks up on the need for ideas, whilst helping shoppers feel they are still able enjoy indulgent moments.

12

Windows 4

“You hear a lot of nonsense talked about what customers want and what they might do. But the only way to find out is to go out, talk to them, and find out what they really want from you” Sir Geoff Mulcahy, ex-CEO of Kingfisher, Mail on Sunday 28th October 2008. thinking businesses will be looking beyond price towards innovation – in terms of the products they deliver, but also how they deliver them in-store. And let’s face it, changing how or what you communicate to shoppers is a lot quicker, cheaper and easier to implement than the average TV advert or new product launch.

Let’s be clear - none of this is easy. But it is only by taking positive steps that businesses will make the most of a difficult situation. The environment in which people choose whether to take your product off the shelf, or not, is exactly the environment in which businesses have the best opportunity to maintain or increase their sales. Forward

In a number of the commodity categories the brand vs own label ‘war’ is raging, and in these categories the brands must re-think how they present themselves, and what are the factors that will persuade a shopper there is a tangible difference between the quality provided by the brand vs the own label. In other categories the risk comes from the fact that the category has slipped off the shopper agenda, or is considered too much of an extravagance. Taking a step back and looking at how the category can re-position itself in order to generate interest and consideration will be key in ensuring the category survives the downturn. (To find out more about the implications for different categories contact Shoppercentric)

Windows 4

13


CONTACT Alice Woodcock, marketing and operations manager Shoppercentric: alice.woodcock@shoppercentric.com mobile: + 44 7977 579 076 recession@shoppercentric.com or visit our web site at: www.shoppercentric.com

This ezine contains just some of the themes that have come out of our new research on shopping through the recession. We have more insights and implications available via a presentation. To arrange a meeting to see this presentation, please email us at: recession@shoppercentric.com

Windows 4

Windows 4


CONTACT Alice Woodcock, marketing and operations manager Shoppercentric: alice.woodcock@shoppercentric.com mobile: + 44 7977 579 076 recession@shoppercentric.com or visit our web site at: www.shoppercentric.com

This ezine contains just some of the themes that have come out of our new research on shopping through the recession. We have more insights and implications available via a presentation. To arrange a meeting to see this presentation, please email us at: recession@shoppercentric.com

Reissued September 2009

Windows 4

Windows 4


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