Main News Desk

Consumer confidence shaken, though many are better off

~ Acxiom study shows only 18.7 per cent are ‘worse off and worried’, despite downturn ~

July 27, 2009

Acxiom, the global leader in interactive marketing services, has discovered that the recession has redefined the UK’s spending habits to such an extent that British shoppers are have changed significantly from this time last year. The study, which questioned over 82,000 consumers, found that those consumers who are worst off in the recession aren’t necessarily those cutting back the most. At the same time, feeling better off isn’t always translating into buoyant purchasing.

Acxiom has identified seven new consumer profiles, falling within three main groups: secure and better off (37.9 per cent), the status quo (43.3 per cent) and worse off and worried (18.7 per cent).

According to Acxiom, UK consumers now fall into three main spending groups, which can then be divided into seven distinct sectors:

37.9 per cent of the population are secure and better off. Of those:
Cautious but confident consumers (27.11%) tend to be affluent young families and singles who feel slightly better off but are more likely to save or pay off debt to secure them for the future
The cluster that is protecting the dream (10.88%) are highly affluent singles or professional young families who are financially savvy and always on the lookout for a good deal. They’re decreasing spend to protect their income

The status quo represents 43.3% of the population. Of this:
Business as usual (20.34%) is a financially stable group who won’t be increasing spend, but won’t be cutting back either
Head down, fingers crossed (15.06%) are mostly mature couple and singles who live to their means, and neither save no use credit. They’re worried, and cautious
Up against it (7.91%) contains young families already struggling with life’s basics, and very worried about job loss. They’ve got an eye for a bargain and are 50 per cent more likely than any other group to use coupons and special promotions

The worse off and worried group represent 18.7 per cent of the population and are feeling the pinch the most:
Interest rate casualties (12.84%) are typically over 55 and have a fixed income and savings. They’re feeling the falling interest dates and making cutbacks on clothes, home entertainment and DIY
Life goes on (5.86%) is a group of retired singles who have made good provision for their retirement. They’re feeling worse off but continuing to spend, and are likely to spend more in online shopping

Executive quote

Fiona Sweeney, retail specialist at Acxiom UK, commented: “It’s not all bad news – as a result of falling interest rates some consumers are better off. Of course for others, job security is crucial and worries about the future affect them, as well as having a vicarious effect on those around them.”

“What’s most significant for retailers is that the old classifications have gone out of the window – many of the groups traditionally targeted have seen a reversal of fortunes, or a reversal of attitudes. It’s vital that marketers are equipped with the latest information about their consumers, so that goods and services are marketed correctly and valuable resources are not wasted as the recession continues.”

About the company

About Acxiom
The global leader in interactive marketing services, Acxiom connects clients with their customers through deep consumer insight, powering effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration and consulting solutions for effective marketing across digital, Internet, email,
mobile and direct mail channels. Founded in 1969, Acxiom is headquartered in Little Rock, Ark., and serves clients around the world from locations in the United States, Europe and the Asia-Pacific. For more information about Acxiom, visit www.acxiom.com .

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Suzy Ferguson or Lisa Gillingham
Tel: +44 (0) 117 315 8585
Email: acxiom@lewispr.com

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Consumer confidence shaken, though many are better off

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