Yorkshire shoppers smart and thrifty report reveals

THRIFTY Yorkshire shoppers look set to keep hunting for a bargain with retail spend in the region anticipated to be up 0.5% in December compared to 2008.

According to a new report by business advisory firm Deloitte, retail spend will only fall slightly for the whole of 2010 in line with the rest of the UK following the Christmas lift.

But although levels of consumer spending have remained steady the report reveals that economic uncertainty is influencing people’s shopping habits with an emphasis on greater spending control.

More than half (56%) are cutting back their expenditure on daily indulgences such as snacks or compared to this time last year.

The research also revealed that in Yorkshire, as in the rest of the UK, 78% of people are spending the same or more on food and other groceries while ‘wants-driven’ spending has taken a bigger hit.

Nearly 40 % of people are spending less on clothing and footwear this year compared with last and 45% are spending less on entertainment and leisure.

Deloitte said that the trends were consistent throughout the UK and showed that shopping habits had changed with consumers becoming more value-conscious.

It said that the digital age had made information available 24/7 and now anyone with the internet had the ability to research products, prices and opinions and with mobile technology enabling them to do their homework on the move.

In Yorkshire, 62% of shoppers have reduced the number of impulse purchases they make while 43% say they more regularly seek out vouchers before shopping for food and other groceries.

Shoppers are becoming more aware of where their money goes too with
65% saying they are more aware of what they spend their money on compared with 12 months ago.

Nicola Frampton, retail director at Deloitte in Leeds, said that it was encouraging to see that consumers were still showing a “bedrock of fundamental” confidence depsite the recession.

“There is no doubt that shopping habits have changed over the last few years with the emergence of a thriftier or ‘smart’ shopper and although this development has been brought into sharper focus by the recession, it is actually the result of widespread internet use,” she said.

“Consumers are now able to carry out product research from the comfort of their armchair with price comparison websites and online shopping empowering them and providing greater transparency. There is also a move away from more expensive branded products with 52% of consumers in Yorkshire buying cheaper or non-branded products.”

Ms Frampton said that it was wrong to assume changes in shopping habits were a temporary response to the downturn and that nearly half of people interviewed said that they would stick to more thrifty spending.

“Going forward, the retail sector is likely to remain extremely competitive with the shift of power in favour of the consumer meaning that retailers will need to adjust the way they interact with these smart shoppers and focus on improving their selling and customer service skills,” she added.

“The expected increases in unemployment, together with the impact of higher taxes, increased National Insurance payments and the rise in VAT are also likely to take their toll on retail sales next year and consequently, we forecast a slight fall of 1.5% in 2010.

“Given these conditions, it is inevitable that there will be winners and losers from such a competitive environment.”