Wal-Mart Asda assesses impact of recession

Speaking in London at a seminar organised by Asda and Cebr to discuss the impact of the recession on consumer spending, Asda President and CEO, Andy Bond, has predicted that the recession will fundamentally change consumer behaviour and that retailers who fail to adapt to the new reality won't survive. He said: "We can already see how changing attitudes are affecting customers’ shopping habits. Consumers are not prepared to pay a premium when they cannot taste the difference. The era of conspicuous consumption is over. Saving money by cutting out waste of all kinds will be the priority. I don't see this as being a short-term response to the recession but a fundamental shift that will see the emergence of a new breed of customer. Retailers with authentic low cost operating models, who embrace sustainability as a means of reducing costs and who are transparent about how they pass savings on to their customers will be the winners. Those who continue with high/low pricing will become increasingly distrusted."

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