The rise of the "moment" economy, Tim Hughes

In a recent post by LinkedIn, here, "People are spending less on big events and instead buying smaller, meaningful treats as the cost of living rises, according to retailer John Lewis & Partners."

"In its How We Shop, Live and Look annual report, the retailer reveals a shift towards a "moments economy" which is seeing consumers prioritise spending on making memories with loved ones or on experiences. The retailer is one of the latest to shift attention to smaller, everyday purchases: online retailer The Very Group has also launched its first own-brand value range in response to rising price pressures."

Linkedin then asked the questions

Do you think spending habits have changed for the long term?

Will retailers need to change their approach to attract customers due to cost of living pressures?

So I asked, DLA Ignite's own retail expert, Stephen Sumner his views and he said

"My view on consumer habits are always grounded in behaviour.

“Will retailers need to change their approach to attract customers due to cost of living pressures?”

This needs a word change from ‘need’ to ‘can'

There this odd/distorted view in business that we aren’t consumers🤷‍♂️

The reality is generally speaking people do what you do!!!

Macro economics rarely play out in day to day spending (not close enough to home yet) but when it gets micro (like energy, inflation & Covid) things tend to have a short term yet fundamental impact on our behaviour.

This does have less of a slow trickle down impact than the macro effects and more of an immediate behavioural change across the economic supply chain - all businesses rely on what/how we decide to use our income.

One example is the enforced changes to how we looked properly at making our homes more of a leisurely place to live during covid - so perhaps a combination of ongoing employment fears combined with economic adjustments we made as a result of Covid have simply taught us to amend that behaviour sooner rather than later.

The JLP comments would suggest they’re finding ways to explain and prepare shareholders that the AOV has taken a nosedive."