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Change in Consumer Behaviour Confirmed
Listed under: News
Published: Tuesday, May 26, 2009
The economic downturn has altered shopping behaviour more than ever before, seeing consumers take full control of the retail market and drive change within the sector, according to a recent speech by Andy Bond, CEO of ASDA.
Speaking at the British Retail Consortium's (BRC) Annual Retail Lecture earlier this month, Mr Bond identified a number of key changes in shopping behaviour, paying particular attention to the rise of hobby-based pastimes.
“People are suddenly saving like never before! – with 70% of people saying they'll save any extra money they have,” he said. “They are being very creative in finding solutions for themselves that will allow them to make ends meet and also maintain their previous lifestyle. This whole trend has coined a new phrase – we're moving from the era of do it yourself to create it yourself – DIY to CIY!”
Mr Bond also highlighted the return to traditional values which has seen home-based activities grow increasingly prevalent. “There has been a rebirth of local communities,” he added. “We're seeing a surge in family time spent on leisure pursuits together and an increased sense of local identity. As retailers we play an important role here.”
But Mr Bond was keen to warn businesses that the shift in consumer behaviour could impact the retail market significantly over the next year. “It has provided the power for customers to interrogate the validity of any product or service claim and will define a new dawn of fairness, democracy and honesty in both how companies operate and how they interact with their shoppers. The consequence is, customers are shaping businesses rather than vice versa. Whilst consumers may be ready to shop again, the recession will have definitely created a good degree of long term behaviour change.”
However, retailer Jane Pinder, who runs papercraft shop The Stamp Bug in Hetherop, isn't convinced by Mr Bond's suggestions. “To be honest, I think customers have always been in the driving seat,” she says. “At the end of the day, if they don't like what you're selling, they won't buy it. As a company, we haven't noticed much of a change in consumer behaviour. While the recession might have had a small effect on the retail sector, it hasn't been huge and I think there's definitely too much hype about the recession and the impact it is likely to have.”
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Speaking at the British Retail Consortium's (BRC) Annual Retail Lecture earlier this month, Mr Bond identified a number of key changes in shopping behaviour, paying particular attention to the rise of hobby-based pastimes.
“People are suddenly saving like never before! – with 70% of people saying they'll save any extra money they have,” he said. “They are being very creative in finding solutions for themselves that will allow them to make ends meet and also maintain their previous lifestyle. This whole trend has coined a new phrase – we're moving from the era of do it yourself to create it yourself – DIY to CIY!”
Mr Bond also highlighted the return to traditional values which has seen home-based activities grow increasingly prevalent. “There has been a rebirth of local communities,” he added. “We're seeing a surge in family time spent on leisure pursuits together and an increased sense of local identity. As retailers we play an important role here.”
But Mr Bond was keen to warn businesses that the shift in consumer behaviour could impact the retail market significantly over the next year. “It has provided the power for customers to interrogate the validity of any product or service claim and will define a new dawn of fairness, democracy and honesty in both how companies operate and how they interact with their shoppers. The consequence is, customers are shaping businesses rather than vice versa. Whilst consumers may be ready to shop again, the recession will have definitely created a good degree of long term behaviour change.”
However, retailer Jane Pinder, who runs papercraft shop The Stamp Bug in Hetherop, isn't convinced by Mr Bond's suggestions. “To be honest, I think customers have always been in the driving seat,” she says. “At the end of the day, if they don't like what you're selling, they won't buy it. As a company, we haven't noticed much of a change in consumer behaviour. While the recession might have had a small effect on the retail sector, it hasn't been huge and I think there's definitely too much hype about the recession and the impact it is likely to have.”
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