Retailers in the United Kingdom shifted their marketing tactics during the recent global economic crisis, emphasizing deals when shoppers started looking for bargains to stretch their budgets.
But while the worst of the economic downturn seems to be over, U.K. shoppers haven’t returned to their previous shopping habits, according to a recent survey, suggesting stores need to consider this thrifty-conscious customer as the “new normal.”
A poll from Shoppercentric found 63 percent of U.K. shoppers said they shop at a “discounter”—or discount store—more than they used to. Approximately 95 percent of respondents are familiar with and have access to at least one discount chain. Of these shoppers, 97 percent have bought from a discounter previously and 88 percent say they visit one regularly.
“Whilst the British economy appears to be off the critical list, U.K. shoppers are very much still feeling the pinch,” said Danielle Pinnington, managing director at Shoppercentric. “Our research reveals that 78 percent of shoppers have been adversely affected by the current economic environment, whether as a result of falling income or higher household costs.”
The trend seems to reach across income brackets. The survey found 59 percent of shoppers with a household income of more than £50,000 claim to go wherever the best prices are and roughly one in three of them are shopping regularly in Aldi and Lidl, two mid-level discount chains.
“As a result discounters are attracting a whole new customer base,” Pinnington continued. “But do we expect this to change when shoppers have more to spend? We doubt it; shoppers appear to have changed their spending habits for good.”
Stores that U.K. shoppers consider to be discounters include the U.K. equivalent of dollar stores—Poundland (80 percent), 99p Store (75 percent) and PoundWorld (64 percent). Middle-level stores are Aldi (52 percent) and Lidl (49 percent). Other retailers include Savers (37 percent), B&M (34 percent), Iceland (30 percent) and Wilkinsons (29 percent).
The survey results hold particular meaning for traditional supermarkets, as Aldi and Lidl are considered by 44 and 31 percent of shoppers respectively as good replacements for supermarkets. Additionally, 39 percent of shoppers considered both of these stores good for regular shopping trips.
Respondents said their main reason for shopping with discount retailers was the need to reduce shopping bills (67 percent). Great prices and better deals than the supermarkets was the next reason (47 percent).
Edited by Blaise McNamee