Deloitte released its 2012 Xmas survey. The annual report highlighted the growing concerns among European consumers.
Deloitte stated that consumers in some eurozone countries have increased spending to match the rate of inflation. However, they are extremely sensitive to price increases. This will likely prompt retailers to engage in price wars with each other.
Consumers throughout the region are concerned about the economic impact of the eurozone debt crisis. The International Monetary Fund, European Commission and European Central Bank have all taken steps to resolve the concerns the 18 member countries are facing. However, consumers remain skeptical that the economy will recover in the near future..
Consumers in many countries believe that they will have a difficult time keeping up with inflation over the next year. Nearly half of those polled in the report feel that the eurozone will undergo a new recession in the next year. Consumer in Belgium, Spain, France and Poland were among the most concerned.
Koen De Staercke, head of Deloitte Retail and Consumer Goods, said that consumers still want to enjoy their holidays, but are going to be more cautious this year. Deloitte found that customers still prefer to shop in brick and mortar stores instead of ecommerce channels. However, they are increasingly researching products over the Internet to take advantage of the best prices.