Consumer behaviour is likely to change significantly in the next decade, as the ageing population makes more considered purchases.
The Reshaping of Retail report, produced by retail consultant Conlumino on behalf of retail property company Hammerson has found that by 2022, retail spending will have reached £377bn, up 26% on current levels.
Much of this will be driven by an ageing population, with over 55s contributing nearly two thirds of retail growth over the period.
However, the rate of spending growth remains well down on that achieved through the 1980s and 1990s.”Considered consumption” is emerging as a new shopper mindset, which is less impulse-driven and more about selective purchasing.
Neil Saunders, managing director at Conlumino, described the medium-term future as “an era where consumers are calling the shots”.
Hammerson chief executive David Atkins said the shift in behaviour “makes it vital for retailers to have a strong, differentiated brand; offer must-have products; and engage more frequently with their customers”.
Overall store numbers in the UK will decline by 10.3% according to the report as retailers will focus their expansion towards major cities and destination shopping centres.