By Dr Kokho Jason Sit, PhD, University of Portsmouth — The Conversation, 18 January 2022
COVID drastically changed shopping habits. Lockdowns, isolation and illness led variously to panic buying, a surge in online deliveries, and some impulse purchases. But research shows that, on the whole, consumers in The UK have coped relatively well with the pandemic so far — while some remained mindful of price, they were generally not inclined to make sacrifices on quality, continuing to buy the products they like from brands they trust.
This response was at least in part made possible by government support measures including furlough schemes and business-rate relief. But what about the challenges coming next? Rising inflation, higher energy bills, stagnant wages and tax rises have led to 2022 already being described as the “year of the squeeze,” which could leave households on average £1,200 worse off. Research suggests consumers will react more negatively to these economic events — deliberately reducing their spending, becoming more price conscious, switching to cheaper brands, and buying less. Consumers are also likely to become less likely to buy environmentally friendly products, prioritising affordability over sustainability.
Retailers can mitigate some of this change through several strategies: developing and expanding “private label” store brands across economy, standard and premium levels; holding special events or pop-ups that allow consumers to discover new ideas and experiences; and social media campaigns combining themes like “shopping smarter” or “healthier eating.” Retailers that show imagination and understanding, and support consumers with their spending, will be appreciated by customers old and new. This article has been republished under Creative Commons licence.