Research reveals UK consumers still feeling economic gloom

By Emily Kearns

Published: 20 May, 2013

UK consumers remain gloomy over the economy's impact on their personal finances, new research has revealed.

Speaking at the London International Wine Fair at ExCeL, London, today, Nielsen client business partner Helen Stares said about 56% of those surveyed said they were worse off at the end of 2012 than they had been a year previously.

In addition, virtually no one said they expected to be better off in the next year, while a further 82% said they believed the UK was still in recession, even if official statistics prove otherwise.

Stares said utility bills topped the list of financial concerns for consumers, followed by the economy, personal debt, job security, and increasing food and fuel prices.

She added this is reflected in how people are looking to spend their cash, with two-thirds looking to cut their utility bills while about half of everyone wanted to spend less on groceries and a third were trying to cut motoring costs.

This is reflected in the way consumers shop with smaller big-brand convenience stores, such as Sainsbury's Locals, discounters and online retailers seeing a boost in sales.

Stares said convenience type shops had seen a 4.3% increase in year-on-year sales for the year ending April 27, 2013 and are now accounting for 23% of all sales as about half of all consumers visit them at least once a week.

Meanwhile discounters, which are about 25% cheaper than big supermarkets, are now attracting around 30% of all shoppers where the average basket spend is £20, driving double-digit growth.

Stares added online grocery sales also grew by 5% in 2012 and this is predicted to increase by 6% this year providing retailers with new retail challenges.

"Of those who have smart mobile (phones) about 95% are using Facebook or Twitter," she said.

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