Recession Changes Consumers' Shopping Habits

Shoppers not only want cheaper clothes, but they also prefer places that have nice fitting rooms, are fun to shop and are frequented by their friends.

That’s the conclusion of a recent study by The NPD Group Inc., which provides consumer and retail research through surveys and studies.

The Port Washington, N.Y.–based company interviewed some 71,000 consumers across eight categories, reviewing about 60 retailers and 75 brands per category. The new “Retail & Brand Landscape Report” then ranked each in terms of shopper engagement, shopper priorities and shopper impressions.

Dee Warmath, NPD’s senior vice president of retail insights, said the survey considered everything from apparel to electronics and showed that consumers’ go through buying spurts. “What we are seeing is a rolling release of pent-up demand. In a certain time period, it is all about apparel and footwear, and then it is about needs. Do they need electronics?” she said. “What we have observed is that the manufacturer or retailer is coming in for a share of a smaller pie.”

Consumers are still into value and sales. “Through the recession, consumers learned it is okay to walk away. They can live without certain things. They are really thinking about what is important to them and what their priorities are. They are not as willing to compromise,” Warmath explained.

Also, brand names still carry cachet, but there has to be value to them. “If a national brand didn’t offer better value or quality than a store label, then they would buy the store label,” Warmath said. “The brand name is more of a navigational tool.”

The study also found the recession changed shopping habits a bit, with people considering a larger basket of retailers over a wider range.

“I might shop at a Target, a specialty store and a Macy’s,” Warmath said. “I am looking to see what is important to me in this particular purchase and where the place is that can satisfy it. It is the best place instead of the standard place.”—Deborah Belgum

TO SHOPPER PRIORITIES FOR 2010

bull; Carries the styles you wantbull; Is a store for youbull; Has brand names you wantbull; Has nice fitting roomsbull; Has a broad selectionbull; Is fun to shopbull; Is always in stock in the sizes you needbull; Has high-quality productsbull; Has the latest trendsbull; Is a place where friends shop

Source: The NPD Group Inc.