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EU shoppers recession behaviour

Latest research from international food and grocery expert, IGD reveals new shopper loyalties are emerging across Europe as food retailers and manufacturers engage in an intense ‘contest for value.’

More than a quarter (27%) of shoppers in Europe have made changes to their food and grocery shopping due to the recession, with 70% of these shoppers saying they will stick with their new habits even when the economy recovers. 

In France, a third (33%) of shoppers have changed their shopping habits with 70% of these shoppers saying their changes are permanent. This compares to 22% of Spanish shoppers that have made changes, with 64% of these shoppers saying they will stick to their new habits regardless of the economy

Joanne Denney-Finch, Chief Executive, IGD said: “Shoppers are shopping around more, wasting less, seeking out promotions, planning meals better and taking their time to find the best deals.

“In such a vibrant marketplace, in which new shopper loyalties are emerging, retailers and food manufacturers are responding very rapidly to the challenges presented by the recession. They are each vying to excel at delivering value – and the most effective are reaping the rewards.”

Research conducted with shoppers in France, Germany, Spain & UK released today by IGD highlights a number of winners emerging:

Investment in the quality and variety of supermarket own-label is paying off as almost a third (31%) of shoppers in these markets are buying more own-label

Over a quarter (28%) of shoppers in these markets is visiting discount supermarkets (eg, Aldi, Lidl, Penny, Dia) more often

 

Brands also have a number of shopper trends in their favour.

Almost half (49%) of French shoppers say that a major strength of brands is their reliable "taste and quality", compared to over a third (37%) of Spanish shoppers

27% of shoppers in the UK particularly favour brands because they have “grown up” with them - the highest figure compared to its European counterparts and no surprise as strong heritage has become an important attribute for UK shoppers

An IGD survey of 120 food and drink manufacturers found that they are responding decisively to changing shopper trends. For example:

47% are putting a strong emphasis on price and value through advertising and communications

47% are focusing on brand values in their communications

43% have increased promotional activity

42% have changed pack sizes in response to consumer trends

Joanne Denney-Finch concluded: “Overall, nearly a third (29%) of people in Europe have yet to make major changes to their grocery shopping during the recession but expect to if conditions worsen. So there could be further transformation ahead with a great deal still to play for.”   

 

 


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