Consumer confidence in retail continues to fall

Consumer confidence in the retail market is still low with many people believing that further upheaval is inevitable, according to a new survey by Datamonitor.

The Recession and Recovery research programme which surveyed 1,200 consumers in the UK, US, Australia and Canada, showed 78% of respondents felt lots more shops would close down due to the current economic downturn, with 89% of British consumers agreeing with the statement. Just 15% of respondents felt more new shops would open over the course of the recession.

The survey also revealed that the economic situation is spearheading a larger shift in consumer spending behaviour, with 45% of those surveyed claiming they would start to buy from local stores in order to support local businesses. Furthermore 56% believed their local shopping malls and high streets would be unaffected by mass retail closures.

“As we know consumer spending is under pressure globally and the fact that consumers see more retail stores and chains closing would suggest they are pessimistic about their ability to be able to go out and spend in the short to medium term,” commented Neil Hendry, Datamonitor’s global director of consulting, consumer markets.