MATT JOHNSON is chairman of Mando Group
ECONOMISTS have presented evidence to show that the recession is technically over.
However, all the talk about an end to the recession does not appear to have made any difference to the behaviour of consumers and many businesses.
While they are less hard and fast than the raw economic data provided by government statisticians, there is plenty of anecdotal evidence from retailers and others to suggest that a possible fundamental change in consumer behaviour is occurring.
The recession of the 1990s was followed by a period of increased savings. Figures from banks and building societies suggest that is happening again.
There is also a growing sense that people are making big changes to their lifestyles, with implications for businesses of every size in every sector.
According to a recent BBC report, retailers are adjusting to the new reality and preparing for a very different environment to the one they inhabited in the boom years leading up to 2007.
Asda has spotted a shift in spending patterns and other big High Street players are seeing similar trends.
The supermarket says there is evidence people are trading down as they look to stretch their household budgets. Elsewhere, sales of DIY and car maintenance products have risen sharply, as have home sewing kits.
Are we seeing a return to the “mend and make do” culture of yesteryear? In some areas, the answer is probably yes, but the growth of consumerism has been such that that particular genie may not easily go back in its bottle.
Perhaps most intriguing of all is a report that sales of sealable plastic containers are on the rise as people take home-cooked food into work. The losers here are ready meals makers, with customers more willing to cook themselves.
Premium priced organic vegetables are a lot less popular, too, according to Asda.
The supermarket believes consumption will be subdued for some time, and that changes to shopper behaviour are here to stay for the foreseeable future.
So, looking at what’s happening on our high streets may give us a better snapshot of what our economy is up to than the picture shown by the economic data from dry spreadsheets.
