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North East shoppers staying true

Shoppers in the North East are spending the same in retail as they were last year despite the recession, a new report has found.

The survey, carried out by Deloitte, has revealed that 78% of shoppers in the region are spending the same or more on food and other groceries this year, compared with 12 months ago.

‘Wants-driven’ spending has taken a bigger hit, with 39% of shoppers spending less on clothing this year, while 45% are spending less on entertainment and leisure.

Deloitte predict retail spend in December will be up by 0.5% compared with 2008, but will fall slightly for the whole of 2010.

Paul Feechan, partner and head of consumer business for Deloitte in Newcastle, said: “Consumers are gravitating to the grocers. The increasing number of budget or own label products has been a winner for the supermarkets who have also taken over from traditional high-street chains as the country’s biggest clothing retailers.

“Now more than ever, non-food retailers need to focus on the relevance of their products and differentiation from their competitors.”

The report adds that 56% of people in the North East have cut back on daily indulgences such as snacks or coffee, compared with last year.

And 62% have reduced the number of impulse purchases they make, while 43% say they more regularly seek out vouchers before shopping for food and other groceries.

However, while it may be assumed that these changes are a temporary response to the downturn, 49% of people in the North East say they have changed their shopping habits for the long-term.

This was posted in Bdaily's Members' News section by Ruth Mitchell .