Are consumers returning to old spending habits?
Today's news that sales are up 11% at high-class supermarket Waitrose would suggest that UK consumers are now moving away from the recessionary phase of food purchasing. Slowly but surely it seems that customers are now moving away from the so-called value products and moving back to the items on their shopping lists before the recession began. So how will this affect the UK supermarket sector?
There is no doubt that the likes of William Morrison and some of the more basic food retailers in the UK have benefited from the recession which has seen many customers downgrade their weekly shopping list. However, the likes of Tesco, Sainsbury and Asda, while maintaining their high-value product lists, have also entered the value sector thereby covering themselves whatever future spending patterns reveal.
Whether or not the growth phase is well and truly over for some of the more value food retailers remains to be seen but as the UK economy starts to pick up it is likely that Tesco, Sainsbury and Asda will perhaps benefit more than the others. However, with life remaining very tough on the high street, consumers will still be chasing bargains and demanding value for money for the foreseeable future.
Share this..
Related stories
Loyalty cards
How many times have you been to your local supermarket and been beckoned over by a salesperson looking to sell you their in-store loyalty card? Are you like the vast majority of the UK population and walk away? Are you really missing out on any significant cost savings?
To understand the logic at work it is worth remembering that basically they are a means of attracting you back to...
British Airways on the verge of more cost-cutting
British Airways has been quiet for a few weeks now amid suggestions that the company is drawing up yet more plans to cut costs and effectively cut the unions out of any discussions. However, the company has today been warned by the unions that it should "step back from the brink" or risk a new wave of strikes which would have a massive impact on the long-term viability of the operation.
UK government car subsidy hits early snag
The UK government's surprise announcement of a £5000 subsidy for car owners scrapping cars aged nine years or above has hit something of a snag after just 24 hours. While there were indications that a £2000 subsidy would be made available, the UK government appeared to increase this to £5000 in the hope of increasing interest in "electric cars".
The announcement is now shrouded i...
Reader's Digest book could be closed after 70 years
In yet another reflection of the ever-growing pension funding problem in the UK, the British arm of Reader's Digest is seething on the verge of collapse with a £125 million pension fund deficit seemingly to blame. The American parent company Reader's Digest Association recently filed for bankruptcy protection in America and has been in discussions with the British Pensions Regulator for some time...
Read MoreMatalan announces impressive Christmas trade
January 2010 Matalan, the out-of-town discount retailer, has today issued a statement regarding Christmas trade showing an increase of 13.7% in sales. This comes at a time when founder John Hargreaves is looking to offload the business for £1.5 billion and would appear to be in the final throes of agreeing a sale. While Matalan has often attracted controversial headlines it is worth rememberin...
Read More