TWO-THIRDS of Irish people say they are enjoying their lives as much as ever, despite the recession, according to new research carried out for the National Consumer Agency (NCA).
Although more than half of consumers have seen their income drop over the past year, most say they were spending the same or even more than before, the research shows.
They are shopping around for value less and plumping more for convenience since the last survey was carried out last year. Price, cited by 65 per cent of shoppers, is still the main factor influencing purchasing decisions but the number of consumers shopping around has dropped from 75 per cent to 67 per cent, the NCA’s latest round of market research shows.
Convenience was cited by 17 per cent as a determining factor, up from 13 per cent in the last survey.
The report by Amárach Consulting says two-thirds of consumers are actively seeking cheaper ways of living, 69 per cent are trying to buy fewer things and a similar number are putting off big purchases until the economic situation improves.
Just over half of respondents say their income has decreased, yet almost three in five report their household expenditure going up or remaining the same. Despite this, Irish consumers remain upbeat, with 67 per cent confirming they are enjoying their life as much as ever and 69 per cent viewing the recession as a good opportunity to pick up bargains in the sales.
NCA chief executive Ann Fitzgerald describes the trend away from shopping around as very worrying. “If that trend continues and we fall back into old habits, becoming complacent in our shopping behaviour, we can expect retailers to take advantage resulting in less competition and higher prices.”
A majority of shoppers say they have changed their habits, with the biggest changes being to cut back on treats for the family, take advantage of special offers and buy less.
While more than 50 per cent of consumers admit to seeking out special offers, most respondents say they would prefer to see long-term lower prices rather than special offers.
The report reveals the various ways consumers are coping with the recession. Four out of every five people budget for household expenses, more than half are seeking ways to socialise that are less expensive and more than half are holding off on holidays until things improve.
A third more consumers than previously are collecting and using coupons and 35 per cent more than before are cooking at home from scratch.
More consumers than ever are buying own-label goods and more than a third of consumers say they are shopping more in discount stores such as Lidl and Aldi.