Retail Consumer Dynamics Study

RETAIL CONSUMER DYNAMICS STUDY JUNE 2009

A unique insight into how UK consumers are responding
to the current economic climate and how their buying
behaviour is changing as a result


Table of Contents

2 Executive Summary
About Acxiom
3 Introduction
4 Seven new behavioural portraits
5 Mood of the Nation
6-12 Behavioural Portraits
6-7 Secure and Better Off
8-10 Status Quo
11-12 Worse Off and Worried
13-18 Key Insights
13 Who’s Worried and Why
14 Changes in shopping behaviour by category
15 DIY
16 Grocery
17 Travel
18 Online Shopping
19-20 Summary
21 About Acxiom’s Retail Consumer Dynamics Study

© Acxiom Corporation. All rights reserved. 1 June 2009


Executive summary
Acxiom’s Retail Consumer Dynamics Study provides a consumer-centric
snapshot of the UK retail market based on current consumer thinking
and behaviour underpinned by a wealth of demography and lifestyle
intelligence. By generating critical attitudinal and intention data from
consumers Acxiom can help retailers understand more about the mood
of the nation and how that directly translates into changes in buying
behaviour, both on the high street and via the internet.

About Acxiom

The global leader in interactive marketing services, Acxiom helps clients
connect with their key audiences 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 bespoke solutions.
Founded in 1969, Acxiom serves clients around the world from locations
in UK, across Europe, the US and Asia-Pacific. For more information
about Acxiom visit www.acxiom.co.uk



Introduction

Today’s recession has quickly reshaped the consumer landscape and
traditional attitudes to shopping have changed. Retailers need to adapt
to these shifts, understand the new dynamics that drive buying behaviour
and effectively integrate them into their marketing plans for the future.
This study from Acxiom is based on current consumer attitudes and
world leading segmentation techniques that together can help retailers
manage the new retailing paradigm. The result is seven new consumer
groups (divided into three main categories) based on emerging patterns
of shopping behaviour and financial stress together with proven
demographic and lifestyle data. The groups define fundamental changes
in people’s outlook, their likelihood to change what and how they spend
money and provides retailers with a valuable ‘window’ into today’s fast
changing consumer environment.
Understanding these seven new distinct consumer groups enables
retailers to align their marketing strategies with current and predicted
buying behaviour – from messaging, targeting and channel selection
right through to product ranging, pricing and promotion. Uniquely these
clusters also have real ‘on the ground’ value because they differentiate
every household in the UK. That means they can be applied to customer
records on a retailer’s database and counted at store catchment level
too, providing actionable insight to drive merchandising, local and
instore marketing programmes and location planning activity.
In what is the most acute recession in UK history, many of traditional
‘rules’ about shopping and consumers simply don’t apply and it’s vital
for retailers to get behind the new emerging landscape that presents
both challenges and opportunities alike. Those that do are poised to
develop effective marketing strategies aimed at holding on to existing
customers, maximising opportunities to those still ‘in market’ as well
as onboarding new profitable buyers.



Seven new behavioural portraits can help retailers anticipate
consumer response to challenging economic times

Acxiom has set aside conventional demographic driven portraits to take
a fresh look at consumers according to how they are currently shopping
and their economic mindset. By generating critical attitudinal and intention
data from consumers Acxiom can help retailers understand more about
the mood of the nation and how that directly translates into changes in
buying behaviour, both on the high street and via the Internet. The report
includes key changes in expenditure by retail category, reveals which
financial issues consumers are worried about most and provides insightful
demographic and purchasing behaviour generated from Acxiom’s leading
proprietary consumer database.
This unique report provides a new and timely approach to segmenting and
grouping customers enabling retailers to review their marketing strategies,
messaging, tone of voice and promotional tactics to better align their
propositions with current consumer thinking.

Secure and Better Off:
38% of UK population
Cautious But Confident 27.1%
Protecting The Dream 10.9%

Status Quo:
43.3% of UK population Business As Usual 20.3%
Head Down Fingers Crossed 15.1%
Up Against It 7.9%

Worse Off and Worried: Interest Rate Casualties 12.8%
18.7% of UK population Life Goes On 5.9%



Mood of the Nation: Key Insights

Consumer mood and attitude are key drivers in todays’ changing retail
landscape. Some consumers are, as a consequence of falling interest
rates, currently better off and tumbling retail prices in some sectors have
also added to this trend. Of course for others job security is crucial and
it is the economic indicator that can do most to undermine confidence.
Not only does it transform the spending behaviour of those who lose
their jobs, it also has a 'vicarious' effect on friends, family and
colleagues around them.
In this report Acxiom has taken a snapshot view of consumer perceptions
asking each of the groups if they currently feel ‘better off’ or ‘worse off’
than they did before. The results are marked with the Protecting the
Dream group more than twice as likely to feel better off than those in
Interest Rate Casualties. Even more interesting is how this translates
into actual shopping behaviour. As the rest of the report shows, ‘feeling
better off’ doesn’t always result in buoyant purchasing and likewise those
feeling the pinch are often not the first to cut back on their spending.

Snapshot view of consumer mood:
Feeling better off/Feeling worse off

Feel Better/Worse Off
Life Goes On
100 = UK average
Interest Rate Casualties Over 100 = Feeling better off
Under 100 = Feeling worse off
Up Against It

Head Down
Fingers Crossed

Business as Usual

Protecting the Dream

Cautious But Confident

50 100 150



Behavioural Portraits

Secure and Better Off
Secure And Better Off represents 38% of the population. Its two segments;
Cautious But Confident and Protecting The Dream both feel better off than they did
before but show markedly different behaviours in response to the current climate.

Cautious But Confident
% of
Pen portrait population

Cautious But Confident aren’t going to make huge 27.1%
changes in their behaviour. This affluent and well
educated group understand the need to be cautious and
non-essential buys will be quick to be cut-out of the
family budget.
These aspirational families aren’t worried about the
basics like food and bills but are keen to pay down debt
and do worry about mortgage repayments. Their
expenditure is high across every key category and
pursuing a high quality lifestyle is paramount to them.
Typically they have three or more credit cards that are
rarely paid off in full. They spend upwards of £90 per
week on groceries in Tesco, Sainsbury or Asda and are
prolific online buyers with 10 or more internet purchases
in the last three months on financial services, DVDs and
CDs, electronics and travel.

Hot
• Affluent young families and singles who feel slightly better off than Beds, Leicestershire, Cambs,
previously but are more likely to try and save or pay off debt in today’s Cleveland

economic climate Cold

Dyfed, Devon, Herefordshire,
• Spending is still robust but cautious and this group will be keeping Powys, Cornwall
a tight watch on expenditure on clothing, electronics and toys
• Key concerns are mortgage and loan repayments
• Their typical high level of online shopping is not predicted to change.

Age 18-44
Income £30-49K
No c/cards 3+
Kids age 5-19
Occupation Mid Manager, Education, Medical, Professional
Newspapers Guardian, Independent
Hobbies Skiing, Cinema, Football



Protecting The Dream
% of

Protecting The Dream feel better off than before but are 10.9%
making significant changes in their lives to ensure they
get through the recession unscathed. Price sensitive
and actively looking for a deal, this group is most
worried of all the segments about mortgage repayments
and is likely to switch lender.
Affluent with young families, they demonstrate the single
biggest shift in attitude and purchasing behaviour and
are seriously tightening their belts. University educated
and work in the professions, they look for quality and
value and use store loyalty cards together with other
promotional incentives to shop smart. They frequently
buy online – in particular financial services, groceries,
health and beauty products and charity donations and
spend upwards of £90 per week on groceries most often
at Tesco, Waitrose and Sainsbury’s.

Hot

• Highly affluent singles or professional young families who are Northants, Mid Glam, S Glam,
Aberdeenshire, Bucks, Herts
financially savvy and always on the look out for a good deal
Cold
• Decreasing spend across every major retail category especially Tyne & Wear, W Glamorgan,
food, clothes and going out Dorset, Norfolk, Dyfed, Cornwall,
Northumberland
• Action takers – saving more, paying off debt but ultimately
feeling confident about their financial position
• Protecting their income – shopping around, using loyalty cards,
coupons and special offers.

Age 25-44
Income £45+K
No c/cards 4+
Kids age 1-10
Occupation Professional, Mid Manager
Newspapers FT, Times
Hobbies Skiing, Fitness, Cinema



Status Quo

Comprising 43.3% of the UK population, Status Quo currently feel neither better off nor worse
off. This group includes three segments, Business As Usual, Head Down Fingers Crossed
and Up Against It, each of which has differing demographic profiles and buying attitudes.

Business As Usual
% of

Business As Usual aren’t about to change their spending 20.3%
behaviour or way of life. Even though their major concern
is job loss, they’re not about to make any cut-backs unless
they have to. Typically they are moderate spenders and
comprise singles and families with older teenage children
who feel no better or worse off than before. Day to day
living is comfortable in this group and even in the midst of
a downturn they are sticking with a lifestyle they’ve worked
hard to create.
They’re financially savvy with a wide range of savings and
investment products and tend to pay off their credit cards
in full each month. Preferred grocery stores include
Waitrose, Sainsbury and Marks and Spencer and their
average weekly spend is £65+. Online shopping is
moderate and is likely to be used purchasing flights, travel
and PC products. They prefer mail order for books, charity
donations and financial services.
Hot

Surrey, Herts, Bucks, Berks, Dorset,
• Financially stable and from both top and medium income families Cambs, E Sussex

who feel relatively unaffected by the economic climate. Cold

• Won’t be increasing spend, especially on clothes, toys and home Tyne & Wear, Fife, Gwent,
Merseyside, Mid Glam, Devon
entertainment. Conversely won’t be cutting back in any category either
• No significant financial worries but keeping an eye on bills, food
expenses and job security
• Their moderate levels of online shopping are predicted to stay the same.

Age 45-64
Income £45+K
No c/cards 4+
Kids age 16+
Occupation Professional, Education, Medical, Middle Manager
Newspapers Guardian, Independent
Hobbies Rugby, Golf, Foreign Travel



Head Down Fingers Crossed
% of

Head Down Fingers Crossed is one of the most worried 15.1%
groups with real concerns about household bills, job
security and loss of interest on their savings. Memories
of the recession in the 1970s and 80s could well be
fuelling this concern. As consumers though they’re still
spending and are even predicted to make moderate
increases across several purchase categories over the
next 12 months.
Whilst they’re not cash-rich they don’t have mortgages,
children at home or loans to worry about. Their
outgoings are lower than for other groups and this
relative economic freedom is a significant factor in their
ability to keep spending. They prefer to shop locally or in
the high street rather than use the internet or mail order.
For groceries they use Iceland and are likely to spend
less than £35 per week.

Hot

Middlesex, Merseyside,
• Mature couples and singles who live according to their means and Tyne & Wear, Herefordshire

typically neither save nor use credit Cold

S Humberside, Powys, Lincolnshire,
• Don’t feel better or particularly worse off right now but are in stable Hertfordshire, Derbyshire, Berkshire
employment or retired, with incomes less than £20K pa
• Cautious purchasing (as ever) with little predicted change on everyday
categories like food and clothes
• Significant worries about paying for bills, food and job loss.

Age 45-64
Income £10-20K
No c/cards 2
Kids age None at home
Occupation Manual, Retired
Newspapers Express, Sport
Hobbies Collectables, Bird Watching, Grandchildren



Up Against It
% of

Up Against It comprise young families who typically 7.9%
struggle to make ends meet. They don’t feel particularly
any worse off but their day to day concerns are with the
basics like food and bills, even though they pursue a
more hedonistic lifestyle. Buying predictions in this
group are mixed and include the extremes of spending
significantly more and less across every major category.
Upward spending on clothes, electronics and home
furnishings is marked. Conversely cut-backs on food,
home entertainment and holidays are the biggest of
any single group.
This group doesn’t use credit cards but does have loans
and debt consolidation as a key concern. They shop on
price and preferred grocery stores are Iceland and Asda
where they spend £35-£89 each week. They rarely buy
online but use mail order for home entertainment, books
and PC products. All other purchases are typically made
in the high street. Hot

S Yorks, Tyne & Wear, Cleveland,
Merseyside, W Mids

Cold
• Young families already struggling with life’s basics and the most W Sussex, Surrey, Warks,
worried of any group about paying loans, bills and buying food. Oxfordshire, N Yorks,
Northants, Somerset
Job loss is also a major concern
• They don’t particularly feel worse off than before but many think
they will need to spend more to maintain their current lifestyle
• Buying predictions are divided in the group with both
a significant increase and decrease in expenditure across
all major retail categories
• 50% more likely to use coupons and special promotions
to save money.

Age 18-34
Income £15K or less
No c/cards 0
Kids age 0-10
Occupation Housewife, Retail, Manual
Newspapers Star, News of the World
Hobbies Fashion, Music, Cinema



Worse Off and Worried

Worse Off And Worried represent 18.7% of the population and comprise two groups;
Interest Rate Casualties and Life Goes On both of which feel worse off in the credit
crunch primarily due to diminishing interest on savings and investments.

Interest Rate Casualties
% of

Interest Rate Casualties are ready to enjoy the fruits of 12.8%
their labour. They have worked hard to accumulate a
moderate pension and savings for their retirement but are
now really worried about falling interest rates and how that
impacts on their income long term. They’re careful
consumers earning £15K pa or less and whilst they are
holding down their spend on many key categories, across
others like food, holidays and DIY they are predicting a
moderate rise.
Typically they have one credit card which they always pay
off in full together with bank or building society savings.
They don’t use the Internet for shopping but do buy
holidays/travel, health products and CDs/DVDs through
the mail. The preferred supermarkets are Somerfield
and Co-op.

• Typically aged 55+ with a fixed income and savings to help finance Hot
their retirement Northumberland, W Glam, Norfolk,
Lincolnshire, Dyfed, Devon, Cornwall
• Biggest concern is the effect of the falling interest rates on their
Cold
investment income
Middlesex, Surrey, W Yorks,
• Cost cutting is expected on clothes, home entertainment and DIY Herts, Beds

but many expect to see a rise in their food bills and holiday costs
• See themselves as worse off over the next 12 months.

Age 55+
No c/cards 1
Occupation Retired, Housewife, Manual
Newspapers Mirror, Sport
Hobbies Gardening, Crosswords, Grandchildren



Life Goes On
% of

Life Goes On are typically retired and comfortably off. 5.9%
They’ve been astute over the years in creating a
retirement lifestyle that is active and fulfilling and aren’t
about to put any of their plans on hold. Even though
they’re worried about the recession, all their spending
predictions are upward, in particular on food, clothes and
going out.
With a range of lump sum investments, interest rates are
an obvious worry and they’re likely to also be interested
in Home Equity schemes. They spend up to £49 per
week on groceries, typically at Somerfield and Marks &
Spencer and are most likely to have one credit card
which they always pay off in full. They don’t have much
track record in online shopping but this is predicted to rise
over the next 12 months. Their typical mail order
purchases include flights, travel, PC products and home
entertainment.
Hot

Somerset, Norfolk, Dorset,
• Retired singles who have made good provision for their retirement Aberdeenshire, Cumbria, Gywnedd

Cold
• The most worried group of all about the performance of their
Surrey, Warwickshire, Shropshire,
savings and investments Middlesex, Cheshire, Berkshire

• Feeling worse off but continuing to spend – especially on food,
clothes and going out with no sign of cutting back in any category
• Predicted rise in online shopping.

Age 65+
No c/cards 1
Occupation Retired
Newspapers Telegraph, Express
Hobbies Collectables, Bird watching



Who’s Worried and Why

By understanding more about the financial pressures each of the
segments is experiencing, retailers can get real insight into the mindset of
audiences and engage with existing customers and potential buyers in a
relevant and sensitive way. Declining interest on savings and investments
is the most common concern and with the Bank of England predicting that
rates will stay low well into 2010 this is a potential long-term issue.
Of course job security is high on the list and the report shows it’s
tradespeople, retail workers and middle-managers who currently feel
most at risk of redundancy.
The relationship between how consumers feel and how they behave
(as described in the expenditure table below) is complex – it’s not always
those who are most worried who are changing their behaviour first.
However when the two datasets are used in combination they provide
a powerful tool for market analysis, targeting and campaign planning.

Key Financial Concerns Across the UK
Struggling with the following:

£ £ £
Household Mortgage Loan Saving
Food bills Job security
bills payments repayments interest rates
Cautious But
Confident


Business As Usual

Head Down Fingers
Crossed

Up Against It

Interest Rate
Casualties

Life Goes On

Indicates financial concerns in these areas



Changes in shopping behaviour by category

Consumers were asked what level of increase or decrease in expenditure
they were expecting to make across several different categories. Each of
the segments shows significantly different changes in their shopping
behaviour, even though demographically they may share a similar profile.
Interestingly, one of the most affluent groups, Protecting The Dream, is
cutting-back the most (and across nearly every category too). Conversely
less well off segments like Up Against It (in part) and Life Goes On are
decidedly not about to make downward changes in their lifestyle, even
though their incomes may be under threat.
The following reports describe purchasing behaviour across Electronics,
Clothing, Going Out, Home Entertainment, Furnishings and Toys together
with more detailed insights into the DIY, Travel and Grocery sectors.

Key increases and decreases in consumer expenditure

Electronics Clothes Going Out Home Ent Furnishings Toys

Cautious But _ _ _ _ _
Confident

Protecting the Dream _ _

Business As Usual _ _ _ _

Head Down Fingers _ _
Crossed

Up Against It

Interest Rate _ _ _ _ _
Casualties

Life Goes On _ _ _

_ no change minor increase major increase minor decrease major decrease



DIY: Market levels out as consumers predict
no further significant decline in their spend

The DIY market is changing fast and many of the big players in this sector
have faced declining sales figures since as far back as 2004. The DIY
mania of the turn of the century has lost some of its spark and the current
recession is of course yet another hurdle for this industry.
Although 2008 saw a further dip in revenue, the report shows that only
two groups (Protecting the Dream and Up Against It) are predicting
further cuts in their DIY spend. DIY expenditure may well have reached
its bottom level and remain static as ‘No Change’ indicates for the two
groups shown below. Whilst for others and in particular Interest Rate
Casualties and Life Goes On, consumer predictions show 32.7% and
35.1% respectively are planning a moderate or significant increase in
their DIY spend.
The table below shows the predicted change in DIY spend from each
of the groups together with their tenure and likelihood to actively pursue
DIY as a lifestyle choice.

Key increases and decreases in consumer expenditure on DIY

Predicted change in DIY Incidence of DIY as
Tenure
spend over next 12 months a lifestyle choice

Cautious But _ Homeowner
Very high
Confident Detached / Semi

Homeowner
Protecting the Dream Very high
Detached / Semi

_ Homeowner
Business As Usual Average
Detached / Semi

Head Down Fingers Renting
Average
Crossed Flat / Maisonette

Renting
Up Against It High
Flat / Maisonette

Interest Rate Homeowner/Renting
Low
Casualties Bungalow / Semi

Renting
Life Goes On Average
Flat / Bungalow




Grocery:
High value spenders set to cut-back

UK grocers have remained buoyant despite the recession and according to
TNS Worldpanel and Nielsen sales at grocery multiples are up 6.5% year
on year. There are clear signs of trading down to lower price points either
within retailers or between retailers and some of the low-cost brands like
Asda, Morrisons, Aldi, Lidl and Netto, continue to shine through.
Interestingly it’s the two clusters that feel best off which are making the
biggest cut backs in their grocery spend with up to 18.9% of shoppers
predicting a moderate or major decrease in this respect. Whilst this is a
concern because of their high typical weekly spend, indications from other
groups show a static or upward shift in expenditure. It’s not certain if
those upward shifts are due to increased basket size or in relation to the
increased costs of staple groceries (which rose by more than one fifth last
year), however the report shows a definitive shift in behaviour and the net
results remain to be seen.

Key increases and decreases in consumer expenditure on groceries

Changes to food Preferred Weekly Spend Motivated to shop by
expenditure supermarket (Main Shop) store loyalty card

Cautious But
Confident
Tesco
Sainsbury
£90+ ✓

Tesco
Sainsbury
£90+ ✓
_ Waitrose _
Business As Usual £90+
Sainsbury

Head Down Fingers
Crossed
Iceland
Somerfield
Under £35 ✗
Iceland _
Up Against It £50-59
Asda

Interest Rate
Casualties
Co-op
Morrisons
Under £49 ✗

Life Goes On
Somerfield
Co-op
Under £49 ✗




Travel: Main annual holiday holds its
own on the consumer shopping list

It would seem that few in the UK are prepared to cut-back or forgo their
main holiday this year. The report is yet further confirmation that the
annual two week vacation is now perceived as a ‘necessity’ rather an
‘optional extra’ and travel experts point to long working hours in the UK
and more definitive lifestyle choices as the key factors behind this shift.
The only group looking to cut costs on their main holiday is Protecting
The Dream where 37% of people stated this was their intention.
Conversely there’s a greater incidence of increased spend from right
across the spectrum, especially from Life Goes On where 45% plan to
spend more. Even second and additional holidays are holding their own
in the household budget and whilst in some groups there’s a definite
move to save money in this respect, segments including Life Goes On
and Interest Rate Casualties have over 35% prepared to up the second
holiday budget even further.

Changes to expenditure on holidays for 2009

Second holidays /
Main annual holiday Typical holiday destinations
weekend breaks
Cautious But _ USA
Confident Europe

USA
Worldwide

_ _ USA
Business As Usual
Worldwide

Head Down Fingers _ UK
Crossed Europe

Up Against It UK

Interest Rate
UK
Casualties

Life Goes On UK




Online shopping continues to rise

Despite the downturn in the high street, to date online sales have
continued to grow. In April 2009 internet sales were 14%* up on the
previous year and confidence in online shopping as a way to purchase
more effectively is gathering pace.
The report shows the frequency with which clusters have shopped online
together with their predicted change over the next 12 months and typical
product purchases. More than half of the groups indicated a potential
increase in online shopping, although retailers should note that Interest
Rate Casualties and Life Goes On have little or no history of shopping
this way and any upturn in activity is unlikely to represent a significant
shift in sales.
The report supports market evidence of the emergence of the
Recession Shopper who hasn’t stopped buying but is using the internet
for pre-purchase research and price comparison to ensure they shop
more wisely.

Future Trends in Online Purchasing

Predicted changes in online purchasing:
Online purchasing
Predicted change Typical online purchases
frequency
_ Financial Services,
Cautious But
High CDs/DVDs, Charity donations,
Confident Cameras/TVs etc
Groceries,
Protecting the Dream High Charity donations, Financial
Services, Health/Beauty

_ Flights/Travel, PC Products,
Business As Usual High
Books, Financial Services

Head Down Fingers Low
Flights/Travel,
Crossed PC Products, Books

Groceries, Books,
Up Against It Medium
Charity donations

Interest Rate Flights/Travel, Health/Beauty,
Low
Casualties PC Products

PC Products, Flights/Travel,
Life Goes On Low
TVs/Cameras, etc


*Source: IMRG Capgemini e-Retail Sales Index



Summary

This study is the first of its kind in the UK and is based on real answers Fast Facts
from over 82,540 representative consumers combined with proven
demographic and lifestyle data. The fundamental changes in the economy
Online Social
have made many of the traditional approaches to customer and market
Networking
segmentation obsolete as behaviour and attitudes take a dramatic shift.
By cutting across traditional demographics, Acxiom has been able to • Up Against It
create new behavioural segments that can provide retailers with fresh • Protecting The
insights into how their customers are shopping today and what they Dream
can expect from each of those groups over the coming months. • Cautious But
Confident
• Business As
How to apply these results
Usual
The report demonstrates the complex interaction between attitude,
affluence and behaviour. It provides a new way of understanding retail Using online price
audiences and brings with it a wide range of practical applications for comparison sites
marketing departments.
• Protecting The
Applied at household level, these clusters can be appended to every
Dream
household in the country and counted at store catchment level to
understand customer groups, geographic distribution and drive • Cautious But
effective marketing and merchandising initiatives. Confident
• Business As
Usual
Marketing
• Interest Rate
• Protect your current customers. In conjunction with other data and Casualties
analyses (transactional, pricing, channel, etc), retailers can determine
the future potential of customers and the likely changes in their buying
Planning to save
needs over the coming year
more money
• Attract new customers. Retailers can use these behaviourally-defined
segments to recognise new target consumers and pinpoint how best to • Protecting The
reach them Dream
• Cautious But
• Message. By understanding current attitudes, retailers can adapt their
Confident
key propositions, content and tone of voice across both customer
communications, acquisition campaigns and point of sale • Up Against It
• Business As
• ECRM. Recognise which customers are most likely to buy online,
Usual
the product mix typically bought via the Internet and where sales
incentives might work best
• Media. Determine which media can most effectively reach target
segments and how to use multi channel marketing to maximise
response.



Merchandising Fast Facts
• Define profitable merchandising strategies by store segment based
on their catchment profile Buying
environmentally
• Understand the impact of price and promotion on different segments
friendly products
and how that relates to individual catchment areas
• Support category management planning to ensure the right products • Interest Rate
are in the right store Casualties
• Business As
• Add more weight to de-listing strategies and validate decision making.
Usual
• Life Goes On
Local Marketing • Head Down
• Understand which segments are most prevalent around individual Fingers Crossed
outlets and create targeted local marketing initiatives to increase
store traffic Planning to borrow
more money
• Align local marketing with known media preferences within the
catchment area • Up Against It
• Identify high potential prospects in defined geographies for on • Life Goes On
and offline promotions. • Head Down
Fingers Crossed
• Interest Rate
Location planning
Casualties
• Understand the potential of existing outlets according to the segments
that make-up individual catchment areas
• Identify new high potential geography with an over-representation
of the key target clusters.

Using Acxiom’s Retail Consumer Dynamics insight to evaluate the
interdependent relationships of customers, products and stores,
businesses can still realise increased marketing and merchandising
efficiencies while embracing the real world challenges that this
downturn represents.



About Acxiom’s Retail Consumer
Dynamics Study

Acxiom’s Retail Consumer Dynamics Study was conceived in response
to retailers’ growing need to understand more about the shifting behaviour
in the high street and via the Internet.
It aims to provide a consumer-centric snapshot of the UK retail market
based on current consumer thinking and behaviour underpinned by a
wealth of demography and lifestyle intelligence.
Research method
Earlier this year Acxiom included specialist questions on its online
Research Opinion Poll in order to gauge the economic ‘mood of the
nation’ and establish consumers’ individual spending intentions
across several categories.
82,540 consumers completed these questions and the data from these
answers was analysed using PersonicX® Household, Varimax Factor
Analysis and Cluster Analysis to segment the data into seven key groups.
The groups were then broken down by individual survey question to
create a segmentation solution and further analysed using Acxiom’s
proprietary data InfoBase-X® Lifestyle Universe to identify their key
behavioural, demographic and lifestyle characteristics.

About PersonicX®
PersonicX is Acxiom’s premier segmentation solution and has been
providing businesses with powerful customer insight for over five
years. PersonicX takes consumer segmentation beyond traditional
geodemographic classification and is built from the UK’s most accurate
lifestyle databases offering the widest coverage of the population.
By combining this with universal statistics derived from the UK Census,
PersonicX segments UK households into 52 unique groups. The result
is a highly predictive solution which is proven to be 28% more effective
than any other household segmentation product and is recognised as
a market leading product in its own right.


For more information about Retail Consumer Dynamics
please call us on:

0800 035 2755
or visit: www.acxiom.co.uk

Acxiom Ltd Counting House 53 Tooley Street London SE1 2QN UK
Tel: +44 (0)20 7526 5100 Fax: +44 (0)20 7526 5200 www.acxiom.co.uk ukenquiries@acxiom.com
© 2009 Acxiom Corporation. All rights reserved. Acxiom InfoBase and PersonicX are registered trademarks of Acxiom Corporation.
All other trademarks and service marks mentioned herein are property of their respective owners. June 2009

Retail Consumer Dynamics Study

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