Consumers are changing their shopping behaviour, with two-thirds spending more time seeking out value, a new survey from PricewaterhouseCoopers said today.
More than half have cut down on the amount they are buying, and more than a third - 35 per cent - are buying cheaper products.
Irish retailers have begun implementing changes to give customers the value they seek, and also maintain margins and survive the recession. Some 71 per cent have begun additional promotional activity, while 67 per cent are implenting more discounting. In addition, 60 per cent changed their product ranges, and almost half have re-examined how they source products.
However, the study also found that about 50 per cent of retailers are more positive about their business compared to 2009, with almost a third planning to open new stores, or seek opportunities for mergers, acquistion of joint ventures.
PwC said this was a sign that retailers were positioning themselves for future growth, although 2010 is expected to be a challenging year, with almost two-thirds of retailers planning to continue with cost-realignment plans, and a third are planning to restructure or refinance the business.
"2010 will be a challenging year for companies across all sectors," said Brian Bergin, Partner in business restructuring services at PwC.
"There is a growing consensus that the economy will see a return to growth in the back half of the year and, as our survey reflects, now is the time to be ensuring that adequate financing is in place so support this recovery."
Separately global information services company Experian said the last quarter of 2009 was difficult for Irish retailers as footfall fell by more than 7 per cent compared to the same period in 2008.
Overall, the figures fell 5.7 per cent over 2009.
In Northern Ireland, footfall figures rose 0.1 per cent in the quarter, down from a rise of 7.3 per cent in the first six months of the year and a 3.3 per cent rise on 2008.
Head of Experian's sales and marketing in Ireland Paul Slevin said the year was a tough one for Irish retailers.
"The final quarter of 2009 and the usually buoyant Christmas period have proved stressful for retailers, as many sold off stock at less than premium prices. Many shops in Ireland began to advertise sales and discounted stock from the start of December, which is well in advance of the traditional post-Christmas sales period," he said.
"The Christmas week was the only week in 2009 that showed a year on year increase in footfall in Ireland was the final week of with a 2.8 per cent year-on-year increase. This might be explained by the extra shopping day that occurred in the week, with St Stephen's Day falling on a Saturday, and that fact that many people left their gift buying to the very last minute."
