“Practical Consumerism”

From Apr 2010 issue of STORES/Trends | By Susan Reda

The February issue of STORES reported that shoppers have grown more comfortable with their new-found thriftiness and more resolute in their convictions to put the brakes on certain types of spending.

Now, PricewaterhouseCoopers and Retail Forward, a Kantar Retail company, have released The New Consumer Behavior Paradigm: Permanent or Fleeting?, a report that digs even deeper into the consumer mindset. It reveals that an enduring shift has taken place as a result of the economic downturn, and suggests that retailers and suppliers will need to adapt to consumers’ new shopping behaviors.

The report dubs today’s “more deliberate and purposeful” approach to spending “practical consumerism.” Its authors expect shoppers’ rampant deal-seeking to give rise to more purchase selectivity, and they foresee expanded use of shopping techniques and tools discovered during the recession.

Lisa Feigen Dugal, PricewaterhouseCoopers’ U.S. retail and consumer practice leader, insists that shoppers will increasingly seek out online and mobile coupons, comparison shopping sites and loyalty and rewards programs. The report advises retailers to make promotion and savings-related information more easily accessible across all shopper touch-points and stresses the importance of optimizing search engine and paid search vehicle activities.

While most consumer segments remain in “recession mode,” the report suggests marketers look to Gens X and Y to fuel growth in the post-recession recovery phase. One Gen X segment, in particular — “up-market affluents” — will have a meaningful impact on spending as a result of its life-stage needs and above-average spending potential.