The agency’s quarterly Crunchonomics survey, which polls 1,900 people across five different lifestyle groups, shows 72% of shoppers were dropping premium or finest ranges in favour of budget or value ranges and 76% of shoppers agreed that the current economic climate has had an impact on the quantity or quality of the grocery items they purchase.
Despite making these savings, the report also found that 60% of respondents were spending less of their disposable income, pointing the way to a thriftier Christmas and New Year.
Charlie Makin, chief strategic officer at Arena BLM and author of Crunchonomics, says: “This report is much more positive than six months ago as confidence is rising, but this isn’t being translated into spending. The British public are planning a thrifty Christmas and start to 2010 even though they think the worst is behind them.”
Meanwhile, The Nielsen Company has released a report called Reading the Recession that says the decline in advertising spending is slowing as signs of an upturn in consumer confidence emerge.
It claims that many “leading” brands are now showing year-on-year quarterly growth for the first time in 12 months, in particular among leading homeware chains such as DFS, B&Q and SCS.