Implementing Retailing Management Decisions: Recent Examples

The recession period since 1989 has led to significant changes in consumer attitudes towards their expenditure patterns. Whether these will change over time and revert back to the patterns of the 1980s is arguable. A Mintel Report (1993) report suggested significant differences among European consumers. Some of the topics reported upon were clearly established trends, such as the population and demographic trends and the socio-demographic trends in divorce. However, what is of interest are the expenditure comparisons of the UK and other European countries on food, leisure and clothing and footwear. On each UK spending is below other major European countries with the exceptions of food (where the Netherlands’ spend per household is the lowest) and leisure (for which the Belgians spend least). UK average expenditure on food, drink and tobacco is 16.6% of household budget; on leisure 10% and clothing and footwear 5.6% and this typically is spent on low priced products imported from Asia. Consumer credit levels fell during 1991-2. Mortgage applications reached a hitherto unknown low level. House prices decreased steadily such that by 1992 they were in some areas they reached 60% of the values enjoyed in the mid-1980s.