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Shoppers feel worse off after Emergency Budget

Published: 20 July 2010
The recession is still hitting UK shoppers, with 54% saying they felt the Government's emergency budget would make things worse for their financial situation.
Shoppers feel worse off after Emergency Budget
According to the latest survey from research company Shoppercentric, 31% of shoppers in July 2010 said they had made major changes to their spending habits, up from 24% in January 2009. Meanwhile, 75% of those surveyed agreed they had made at least some changes to their spending, highlighting the almost universal impact of the ongoing economic situation.

The report also found that most shoppers have adopted a strategy of prudence (87%), while 82% chose to economise and 76% switched stores.

Some 12% now say their salaries have been affected by pay cuts, pay freezes or a drop in hours.

Shoppercentric md Danielle Pinnington commented: "It's still a very challenging time for a lot of people - despite reports of green shoots on the horizon! Difficulties in managing budgets don't just disappear overnight, many people will have gone into debt just to keep afloat. It's a case of looking at how and where they can make savings and work towards recovery."

"Retailers need to continue to listen to shoppers and their needs and respond accordingly with good pricing and reward strategies," said Ms Pinnington. "Likewise the Government needs to recognise and provide support for the impact that the VAT increase will have on providers of clothing, restaurants, holidays etc as the long-lasting impact of the recession continues to press sectors outside of the grocery arena."

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