Consumers cut back on clothes to keep fridges full Michael Barker, thegrocer.co.uk 05 November 2009 In: Industry news

Shoppers are spending as much as they were a year ago despite the economic climate, Deloitte has claimed – although consumer spending is tipped to fall next year.

More than three-quarters of consumers (78%) are spending the same or more on food and grocery – and balancing their costs by cutting back elsewhere, with a 45% reduction on clothing spend.

Deloitte predicted retail spend would rise 0.5% in December over 2008, but would drop by 1.5% over 2010 as rising unemployment and higher taxes take their toll.

“This is an outstanding performance [that] reflects a bedrock of fundamental confidence few might have expected,” said Richard Hyman, a strategic retail adviser to Deloitte.

Consumer are shopping around more and becoming less loyal to brands, meanwhile, with 52% of shoppers saying their habits had changed for the long term.

Fifty-nine percent of shoppers have cut back on indulgences such as snacks or coffee, while 60% have made fewer impulse purchases. More than half of shoppers are buying cheaper or non-branded products, while 65% say they are more aware of what they spend now.