Market turmoil fails to panic shoppers
SPSL figures show footfall steady
July 27 2002
UK consumers are continuing to shop despite the growing volatility of the stock markets.
the latest traffic figures from retail analysts Solution Products Systems Ltd shows traffic in June to be only 2 per cent down on June 2001.
SPSL tracks, studies and monitors shopping traffic and behaviour in over 1000 stores nationwide. The company points out that while some retailers, such as Debenhams, are reporting disappointing footfall, others, like M&S, are buoyant.
Retail psychologist Dr Tim Denison of SPSL argues that the trends suggest a slightly more cautious approach by consumers rather than a nosedive. He said: “The largest discrepancy that exists in people’s view of the economy at present is one of perception. Every month respected business analysts express fears that consumer spending will drop like a stone because past experience tells them this will happen. Every month the dive fails to materialise. The fact is that until consumers experience financial pain in person, they are quite prepared to trust their own feel-good, based on full employment, low interest rates and high property values.”
Factors such as low inflation, rising housing values, low unemployment and cheap credit all contribute to consumers’ confidence.
Denison said: “Increasingly people are living for today. There is too much going on in their busy lives to spend time thinking about tomorrow. You can argue whether this is foolhardy or not, but the fact remains that it is the way consumers are thinking and behaving.”
