Shoppers believe retailers could do more to reduce cost of weekly shop
A new study has shown that almost two thirds of shoppers do not believe that retailers do enough to reduce the cost of their weekly shop.
According to Aldata’s annual survey of 1,000 consumers, the over 55s felt most strongly about this, with 70% perceiving retailer support as disappointing compared to 55% of the 18-34 age group.
The survey revealed changing shopping patterns in the UK today, with 42% of younger shoppers more likely to turn to value ranges, showing little loyalty to well-known brands. Over a third of shoppers admitted that they will go to several stores to get the best prices for their goods. However, older shoppers said they are still focused on convenience over cost, with 22% of over 55s (compared to 14% of 18-34s) stating that they will keep going to one supermarket to get all their shopping in one place.
Commenting on the survey results Mark Croxton, head of global customer support at Aldata, said: "Retailers need to find more ways to support their shoppers. This doesn’t necessarily mean slashing prices, but with the cost of living rising by 4.8% since 2010 and over 40% of food and drink manufacturers expecting to raise prices further in 2012, retailers which are perceived as unhelpful will suffer as purse strings tighten. Indeed, 28% of British shoppers admit to buying less because of rising prices, so the threat of lower profits for retailers is very real."
He continued: "Unless supermarkets and smaller food retailers have real insight into the pressures which affect shoppers and offer tailored assortments and solutions that they perceive as valuable, customer loyalty will be affected and sales could drop significantly during 2012."
Aldata said the survey's findings were replicated in France and Germany, with 33% of shoppers in both countries visiting several stores to find the best prices. 44% of Germans admitted to switching to value ranges when cash was tight and a third of shoppers in France (33%) said they took advantage of loyalty cards and promotions to save money. In the US, approximately half (48%) admitted to having turned to generic or ‘own brand’ labels to cut spending during 2011.
Croxton concluded: "What is interesting is that shoppers are now equating loyalty schemes with ways to reduce the cost of their regular shop. The reality for the retailer is that tracking customer change is key; understanding the demographic of the store and how you serve that shopper community and adjust that offer to serve your customer better."
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