Quarter of consumers planning big-ticket spend

One in four shoppers intends splashing out on a big ticket item in the next 12 months in what could provide a welcome boost for retailers.

But overall, consumers have learned a hard lesson from the recession and are remaining cautious about spending on anything other than necessities.

Retail Ireland, which commissioned the survey, called for tax breaks in next month’s budget to ease the pressure on consumers and give them the confidence to start spending again. The industry body, which represents the owners of more than 3,000 shops and department stores across the country, found that 40% of consumers had delayed buying expensive items like cars and furniture over the last two years.

And while 27% said they were likely to make such a purchase in the next 12 months, almost half (46%) said it was unlikely they would be doing the same.

That’s despite the fact that more than half (52%) of the 1,000 people interviewed for the Milward Brown survey said they felt more positive about their financial status than they did 12 months ago.

Retail Ireland director Stephen Lynam said: “This research shows that shoppers are optimistic, but remain cautious. While the economy may be improving, shopping habits that altered following the economic crash show no sign of changing back.

“Positive economic trends mean the Government finally has a chance to ease the pressure on consumers in the upcoming budget.”

Brendan Beere of Millward Brown described the habits identified in the survey as “recession shopper behaviour” and said it had become normalised for consumers.

Examples include the finding that 52% of grocery shoppers expect to shop around more for their groceries over the next 12 months, in particular women, urban dwellers who have greater opportunity to shop around, young people aged 18-24 — the age group with the highest levels of unemployment, and the 35-44 age group — those most likely to have children and mortgages.

But recession shopping is a feature in almost every group in society with 78% saying they buy more special offer goods and 66% buying more own brand and discount label goods than they did before the crash.

Price remains the number one consideration for shoppers, with 40% saying it was their main buying criterion followed by value for money (23%) and quality (18%).

Kathleen Belton, director of Retail News, said the findings showed there would be no let-up in the pressure retailers were under to get customers through their doors. “Competition remains very intense in the sector and there is no sign that this will ease. Even though shoppers are more optimistic as the economy improves, they remain very careful with their money.”

Shopping: bargain times

-52% will shop around more in the next 12 months in the search for low prices and value.

-40% have held off buying big-ticket items such as cars and furniture in the last two years.

-46% will hold off for the next 12 months.

-27% plan to make a large purchase in the next 12 months.

-40% say price is their chief consideration in grocery buying.

-23% say value for money is their main concern.

-8% of shoppers say Irish-made brands are what sways them.

-47% now use loyalty cards when buying groceries.

-52% feel more positive about their financial status now than they did a year ago.

-71% are actively seeking cheaper ways of living.