Economy
methods such as credit cards unsecured
loans. According to the research,
consumers have become less comfortable
about the amount of debt they are
shouldering. Indeed, homelessness
charity Sheher estimates that tbere will be
130,000 personal insolvencies this year.
While the research echoes many leading
economists in predicting that the UK will
not experience a recession in the technical
sense (two consecutive quarters of
negative GDP growth), the slowdown will
continue well into 2009, and the economy
is unlikelyto pickup until2010.
In response to this, a bigh proportion
of consumers are set to 'trade down', by
choosing cheaper brands and retailers.
However, the willingness to resort to
shopping at discount retailers varies by
level of anxiety. Eigbty percent of
consumers categorised as 'panicked' are
more likely to trade down, compared with
just 34% of'placid'consumers. Inline
with this, only 33% of placid consumers
say they will eat out less frequently, while
even fewerthink they will stop shopping
for fun and pleasure.
Most consumers are increasingly price
sensitive, with 73% paying more attention
to the price of tbe grocery products they
are buying. The research also found that
70% of consumers are searching the
internet for cheaper prices, choosing
products on the basis of special offers, and
using coupons and vouchers. Pricecomparison
websites are being visited hy
60% of consumers, while 58% are taking
advantage of loyalty cards.
There is no doubt that consumers will
be considerably more focused on price
over the coming 12 months. During the
1991 recession, coupon firm Valassis
£l4tn
amount of personal debt
accrued by UK con ...