The question of changing consumer behaviour received mixed responses in the Drinks Retailing summer survey.
When asked about consumer behaviour in the last year, two clear but opposing opinions emerged.
One portion of indie retailers reported that consumers have been downtrading in their drink choices, while the other group disclosed that they had been upgrading but buying less.
The group that noticed a premiumisation trend echoed the ‘less but better’ sentiment that has gained traction in the drinks trade.
“People are spending a little more per bottle. Quality over quantity,” one retailer said.
“People seem to be drinking less, but of better quality,” another echoed.
A chorus of other retailers focused on the drop in spending. “Discretionary spending is way down,” one retailer said, while another cited “more cautious spending”, and a third noted “spend down and caution up”.
The theme of downtrading was generally mentioned in connection with higher-priced wines. For example, one retailer explained: “Consumers seem to be making more considered purchases and are happy to look at alternatives for products they may have always gone for, eg Champagne, Sancerre, Chablis.”
An overarching fear, however, was the risk of losing consumers to supermarkets that can sell more inexpensive products.
“Times are hard,” one retailer said. “We are losing customers to supermarkets and online retailers who offer more affordability. People have less and are spending less, yet our costs and products are increasing in value.”
“Fewer people are buying wines, and if they do, they go to supermarkets,” one wine merchant explained.
Meanwhile, another added: “Lower-end price point does not shop with us anymore.” Considering a silver lining, they continued, “Those who come are more adventurous and treat it like an experience. There is more intent behind shopping with us.”
It is a challenging time for independent retail, and it appears consumer behaviour can swing to either end of the pendulum as they navigate the continuing cost-of-living crisis.
