IGD reveals shopper trends at centenary convention

November 1, 2009

Presenting the IGD’s latest shopper research, Joanne Denney-Finch, IGD chief executive, said the green shoots of recovery were still very fragile but she remained upbeat.

“The future is challenging and daunting,” she said. “But I remain positive about this industry because it’s going to be about leadership, leadership in adversity.”

The IGD has polled shoppers about their views on global issues, the changes they have made and how they will behave in future. It found shoppers were most concerned about poverty and hunger and that climate change splits consumers three ways: some dismiss it, others believe it is inevitable and one group believes in climate change and that it can be solved.

In terms of changes to shopping behaviour, the IGD found 40% of shoppers are using their cars less.

“That’s good news for local shops,” said Denney-Finch. Thirty per cent are also more likely to keep using products until they wear out, she said.

In terms of the areas in which shoppers think their behaviour can most influence, health comes top and sustainability last. Only 17%, for example, believed they could make a difference to sustainable fishing.

“Shoppers now feel less empowered with a huge drop in confidence over global warming and the environment,” said Denney-Finch.

Shoppers are not optimistic about the future either, the research found, with only 9% confident life will improve.

The IGD has segmented shoppers based on two key factors: interest in world affairs and optimism for the future.

Outward looking optimists are in the vanguard, it says, and account for 26% of shoppers. This group is most prepared to adapt but difficult to satisfy.

Outward looking pessimists represent 16% of shoppers and are willing to change but need reassurance. Inward looking optimists are the biggest group - 34% of shoppers - but need guiding through issues like food waste, fishing and water footprints. The final group, 23% of shoppers, feels disadvantaged and trapped, according to the IGD, and needs industry to keep delivering on price.

Looking ahead, the IGD asked shoppers to picture themselves in 2012. It found 77% predict food will be more expensive in three years’ time and 54% will be more careful in making choices than today. But that does not mean trading down, said the IGD because 45% expect to enjoy a better quality of food in 2012.

Shoppers expect there will be more diversity in food retailing in 2012 and will spend more with discounters, farmers’ markets, specialist shops, neighbourhood stores and online. There will also be growth in ethical shopping including local food, higher animal welfare products and Fairtrade but organic purchasing will be largely unchanged. Other trends include eating more fruit and vegetables and fish but less meat; spending more on budget and premium own brands. Premium only stores and some mainstream brands will have a testing time, predict shoppers.

“The future is never totally predetermined, it is there to be forged but these predictions do show who is swimming with the tide and who needs to redirect it,” said Denney-Finch. Denney-Finch went on to highlight key leadership characteristics required for the future:

• Decisiveness
• Forcefulness
• Quick uptake of new technology and ideas
• Finding more from less and
• Maintaining standards and values

“Our industry is fantastically adaptable,” she said. “We are used to moving fast, we’re used to reacting to what shoppers want and we’re used to taking brave decisions.

“This is an industry which is willing to lead, has the capability to lead and is up for the challenge.

“We may face adversity but together, we will win through.”

Joanne Denney-Finch: good news for local shops