As pressures on household budgets continue, shoppers are more carefully considering the decisions they make, increasing their expectations of the goods and services they are buying. Across all price ranges, shoppers are looking for not only great value, but also quality and sustainability.
The result is the emergence of new fashioned values where the principles and behaviours of previous generations are being re-proposed for today’s world.
The research is published one year on from the launch of Sainsbury’s 20x20 plan, a set of time bound commitments that places British produce, sustainable sourcing and health and wellbeing at the heart of its future plans.
Commenting on the findings, Justin King, Sainsbury’s CEO, said: “Our customers are recalibrating their spending but they’re not prepared to compromise their values. The credit crunch has not led to a values crunch. We’re seeing people from all backgrounds re-discovering some of the shopping habits of the past to ensure they can meet the values driven aspirations of today.
“Although people have less, they actually care more. The downturn has led to a strengthening of values, irrespective of people’s income. We believe this is not a passing phase but a fundamental change that is here to stay.”
The New Fashioned Values report, which draws on Mintel research and the sales data of Sainsbury’s 22 million customers, says 83% of people have changed their shopping habits in the last year.
At the same time, Sainsbury’s has sold 8.5% more sustainably sourced food in the last 12 months. And more than £1 in every £10 spent on sustainably-labelled products come from those families on the lowest incomes.
People are also re-calibrating their spending to ensure they can still celebrate special times and enjoy moments of indulgence. While 64% of customers look out for more special deals and 22% buy more dried, tinned and frozen foods, nearly a quarter of us (22%) are indulging ourselves at home, instead of eating out. This is supported by Sainsbury’s data which show that sales of fine wine increased by 20% year on year and their Taste the Difference Bistro meals increased by 52% in the same period.
How Sainsbury’s is responding
These behaviours are now engrained in the consumers’ behaviour and retailers need to respond to these new expectations. The findings demonstrate the importance of Sainsbury’s 20x20 plan, which will place British produce, sustainable sourcing as well as health and wellbeing at the very heart of the company’s business strategy.
In the last year, the 20x20 plan has made great progress, with many of the proof points meeting the needs of the new, savvier and more sustainable shopper. Through this plan, Sainsbury’s seeks to support consumers and their shopping choices in two ways
The way we communicate to customers: Helping consumers live the way they want to live, and making it easier for them to buy what they want.
Ensuring that our customers can be confident about the quality, value and integrity of products across all price brackets.