Claudia Saumell, Bord Bia Madrid

In two years, Spanish homes have moved from heavy consumption to austerity in spending, with a saving ratio that went from 10% up to more than 17%. This situation is obviously affecting the entire recuperation of the Spanish economy as a high savings level implies poor demand.

While some of the strong countries of the EU appear to be starting to recover economically, figures show that Spain will be one of the last to leave the recession. Consumption has decreased by around 8.6% with figures for the last quarter showing the economy declined by 0.3% while forecasts suggest that unemployment will reach 20.5% by 2011.

These developments are affecting decisions made by Spanish consumers, not only those who have lost their jobs, but also those consumers with the same levels of income, as they also have reduced their consumption levels and habits.

According to Professor Nueno, Spanish consumers have returned to home consumption, 62% of the consumers are now buying cheaper brands and private labels and 80% of the consumers have changed from fresh food to frozen food. This change in purchasing habits is prompting a restructuring of the retail sector. One of the changes carried out by Mercadona is the return to fruit sales by weight to satisfy consumers that prefer to buy smaller quantities. Also, Mercadona has introduced frozen meat in small packages.

Eroski has also launched some changes in their stores to facilitate a fast purchase: they believe that consumers need convenience and specialised stores with shop assistants that help the client to choose. Other changes include a “fresh products market” and an event area where training and activities will take place.