The 21st Century Consumer

A fundamental change is expected in retailing over the next 5 years. This prediction has been made using the findings of research carried out by Verdict, retail consultants.

Verdict argues that the changes in the demographic profile and aspirations of consumers will have a profound effect on the nature of retailing. The sharp drop in the birth rate 30 years ago means that in 2001 there will be 10%, or 880,000 fewer people in their twenties. In 2001, there will be 20% more 35-45 year olds than there will be 20-29 year olds and there will be 15% more people in their fifties than there are now.

In addition, there has been a shift in income distribution. A high level of unemployment among the young has cut their spending power. At the same time, inherited wealth and windfall gains are benefiting older groups.

The report forecasts the consumers of the next five years will be much more demanding, both in terms of product, where value for money is paramount, and in where they shop.

Consumer spending is expected to rise by 3.5% this year. Growth in 1998 will be a little lower, at 2.9%. The boom markets over the next five years will be in electricals.

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