"[In 2010], we will see the new conservative shopper arriving across all income segments, across all ethnicities, across all geographies and all genders," he said on a CSPNetwork CyberConference titled "How's Business: Growing Amid a Recession" sponsored [image-nocss] by Mars Chocolate North America. [Click here to view an OnDemand replay of this CyberConference, in which Blischok provides an "economic transformation road map" and defines the demographic changes that are driving the transformation. (Retailers and wholesalers free; suppliers $49.)]
"That new shopper is a shopper who is more conservative, more deal-sensitive, more reflective of sustainability, more reflective of the environment and more reflective of the financial resources they have than the shopper they were when they entered this [economic] mess in the middle of 2007," he said.
Referring to what he calls the "transforming economy," Blischok said he's seeing shoppers make permanent changes, and that retailers will have to do the same if they want to be able to compete when the economy improves.
"Shoppers are saying that deals have now become the No. 1 decision driver," he said. "With retailers in general, private brands have emerged as the primary competitive weapon."
Consumers are more accepting of these private brands because they are increasingly prioritizing their needs over their wants.
"We've changed where we shop and we've changed how much we spend," Blischok said. "A challenge to retailers: The c-store can no longer carry the price premium it did in the past. That will have to come much more in line with prices in other channels."
He added, "Without question, the economic climate is creating significant changes in shopper behavior and is projected to continue to do so for the foreseeable future. The high cost of daily living is creating new rituals around what shoppers buy, when they buy and how they eat and how they consume in general.... We're seeing a change in all aspects of how consumers shop."
So when might this "new normal" become a reality?
"I expect to see these trends continue for at least the next 12 to 18 months. Normalcy, as redefined by shoppers, will come in four to six years."
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