Magazine article Marketing

Disloyalty Rises on UK High Street

Magazine article Marketing

Disloyalty Rises on UK High Street

Article excerpt

Research reveals that more than a fifth of shoppers would ditch their favoured retailers in pursuit of cheaper goods.

Cost-conscious shoppers affected by the credit crunch are deserting their habitual stores in the hunt for bargains, according to research by retail specialist Verdict Consulting.

The report argues that British consumers are growing more fickle, with 22% of respondents saying that they were dissatisfied with their favourite store and would consider switching to another retailer.

Verdict claimed that with the equivalent of 10.8m shoppers expressing their dissatisfaction, customer loyalty on the UK high street is at its lowest rate in 10 years. In 1998, customer disloyalty was 20%.

The clothing sector has suffered the highest increase in disloyalty, up 3.1% to 25.2% since 1998. The DIY sector recorded the slowest growth up 0.6% to 21.4% over the same period.

The survey shows food to be a particularly competitive arena, with more than a third of shoppers saying they would switch to another supermarket, up 3% since 1998, despite the loyalty incentives offered through schemes such as Nectar and Tesco Clubcard.

The study claims that supermarkets have encouraged consumer disloyalty by cutting prices and running price promotions. This has been to the benefit of discount grocers; in the three months to mid-June, Aldi and Lidl posted year-on-year sales growth of 21% and 13% respectively.

Tesco and Sainsbury's lagged behind the market average, posting declines in year-on-year sales growth of 5% and 4% respectively. …

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