Recession changes Yorkshire consumers’ perception of value

THE region’s retailers came together last night to discuss how the recession has affected the buying habits of Yorkshire consumers.

A panel of high profile retailers including chief executive of Matalan Alistair McGeorge focused on how retailers need to adapt to meet the changing needs of consumers as a direct result of the downturn.

Research carried out by the event’s host PricewaterhouseCoopers reveals that the recession has brought about a change in habit that has influenced a permanent step change in the way consumers perceive value and spend money.

The report found that over 70% of consumers who have traded down to lower-priced items for some or all of their groceries and 60% of those who have traded down for clothing will continue to do so once the recession is over. 78% of people who have traded down on grocery shopping believe they receive the same or better value from lower-cost items.

PwC has also found that the flight to value will intensify because the share of total household spending absorbed by groceries and clothing has been falling over the past 25 years, as spending on more non-discretionary items such as leisure, housing, fuel and mobile and broadband access are demanding a larger share of wallet.

The research suggests that consumers will be willing to spend more on products and services that they perceive to have genuine value, while focusing ruthlessly on finding the lowest prices for more commoditised goods.

Anna Beilby, director and retail specialist for PwC in Yorkshire, said: “This recession has seen consumers in Yorkshire trading down and changing their perception of value. Much of the stigma relating to low priced products has disappeared and shoppers’ habits have changed accordingly – consumers have seen what’s on offer and like it.

“The growth of the value sector, which is particularly apparent on the high street in Yorkshire, has given consumers more choice and better value for money – consumers will still splash out when they see clear benefits but are not afraid to trade down elsewhere.

“The challenge for our local retailers is to understand consumer behaviours in their own sector so that they can compete on value, rather than price.”