More than 26,500 retailers will be wiped off the UK high street by 2015 as post-recession shoppers become more “reasoned and thoughtful”, according to research published today.
Transitions to the New Consumer, released by accountants and business advisors BDO, predicts that up to 0.9% of all retailers, including 1,500 in the homeware sector, will close down as the UK emerges from recession and consumers shift to a more reasoned and thoughtful for of consumption.
BDO forecasts that consumer spending will recover, with retail spending increasingly slightly from 2.6% to 2.8% next year, but only businesses that recognise that the recession has changed consumers will be successful.
The report finds that shoppers are no longer so interested in factors such as volume of product stocked or even variety of product, and instead make their purchasing decisions based on individualised services and personal shopping experiences.
Don Williams, head of retail at BDO, said: “Businesses will not survive and thrive if they do not take steps to understand the psychology of the new consumers. The recession has been a catalyst for change and people are becoming much more demanding. This means consumers want to buy from retailers who target and treat them as individuals.”