Matt Coode, Partner, OC&C Strategy Consultants: Today’s figures show that consumer spend has decreased by 1.2 per cent since June, leaving retailers unsure of how to move next. The downward trend reveals that consumers shopped a little earlier for their summer wardrobes this year and are prioritising holidays and experiences instead of goods during the summer months.
Many retailers are reacting by moving more swiftly into promotions in an effort to clear their stock ahead of the Autumn/Winter season, which should help sales. But we should not expect an Indian summer for retail trading: it is likely that another period of consumer belt-tightening will soon kick-in.
That being said Christmas spending may well start earlier this year as shoppers look to spread their costs over a few months. It’s essential that retailers adapt to this by building a fresh view of their brand, focusing on value for money and evaluating when is best to pull the pricing strategy levers.
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