When - and not if - the recession in Ireland ends, consumers will express some of the ‘pent-up demand’ by spending money on everything from holidays to eating out.
The good news for retailers was announced by Mr Gerard O’Neill from Amarach Research at the annual Londis group’s 2010 Annual Retailer Conference in Galway this month when he revealed that growth in the economy is projected by mid 2011.
Once the recession is over there will be a lot of “pent up demand” and consumers will want to spend in the following order; holidays, clothes, groceries, cars, eating out and furniture, said Mr O’Neill. He also revealed that people’s preferences have changed dramatically since 2001 when convenience was rated as the most important factor in shopping, after price and quality. The same questions in 2010 evoked very different responses with an overwhelming 70 per cent saying that price was the most important factor, then convenience, followed by quality.
This year 53 per cent of people surveyed by Amarach also said that they care about promotions and price. It was further noted that loyalty to retailers no longer applies and cannot be depended upon anymore with one fifth of shoppers having changed grocery stores for their shopping over the past year.
Two thirds of Londis retailers surveyed called for Government support on the issue of wage costs, in light of the existing JLC system which places retail wage rates up to 25 per cent higher than the national minimum wage.
Stephen O’Riordan, chief executive, ADM Londis plc said: “In our survey almost 90 per cent of retailers believe that it will be the second quarter of 2011 and beyond before the Irish economy returns to growth.”
Some 300 delegates from Londis stores across the country and industry personnel attended the conference which had as its keynote speaker British explorer and hero, Sir Ranulph Fiennes, with Matt Cooper, broadcaster as MC.
