Consumers stick with value brands, says GI survey

A GI Insight product story

Edited by the Marketingweek Marketplace editorial team Nov 26, 2009

GI Insight has released a survey that suggests consumers are reluctant to return to pre-recession spending habits after moving to 'value' retailers.

According to the research, 36 per cent of UK consumers have gone 'downmarket' with their grocery shopping and switched to value supermarkets for a significant portion of their food purchases in an effort to economise as the effects of the recession continue.

The study also found that, now the economic outlook is improving, only 10 per cent of UK consumers plan to move back 'upmarket' within the next year, representing a net loss for higher-end supermarkets of 26 per cent in the long term.

A similar study conducted by GI Insight in May found that a net total of 21 per cent of shoppers had moved downmarket and planned to stay there.

These latest results indicate that, as the UK continues to face a difficult economic climate more consumers that have moved to less costly alternatives are now beginning to see this as a long-term solution However, shoppers are clearly starting to loosen the purse strings a little in some areas as 15 per cent of respondents said they had already started buying quality brands again, even though they are more expensive.

The survey found high levels of long-term slippage from premium to value among women (30 per cent) and the 25- to 34-year-old age bracket (also 30 per cent).

Consumers in the north east and Wales represented the greatest level of lasting slippage (42 per cent and 41 per cent respectively).

In contrast, the over-55s represent the lowest long-term slippage (19 per cent), but given their more stable financial circumstances - empty-nesters, who have probably paid off their mortgage - they are least likely to have switched to value alternatives in the first place.

When it comes to brands, 18- to 24-year-olds and Londoners topped the table with 26 per cent and 24 per cent respectively saying they have started buying quality brands again, even though they are more expensive.