Britons won't spend freely until 2012

Almost 60 percent of British consumers think it will take up to three years until the economic climate has improved to the point at which they can spend freely again, a survey by consultants Accenture showed.

The Accenture Global Consumer Spending Study also found 55 percent of shoppers believe their financial situation has worsened since this time last year, and that many have adjusted their spending habits accordingly - eating out less, buying fewer branded products and waiting for goods to go on sale.

"These results illustrate that today's consumer is still a 'value hunter' and retailers must know how to respond," said Janet Hoffman, managing director of Accenture's Retail practice.

"Retailers should examine their pricing and product strategies closely and focus on delivering products that address customers' needs, at the right price points."

Accenture conducted a Web survey of 508 British consumers in April and May, following on from an initial survey in October.

It found that 75 percent of consumers have changed their grocery shopping habits, with 70 percent saying they were less likely to buy ethical or green products and 67 percent saying they were spending less on brands.

Just under two-thirds are eating out at restaurants less, while 39 percent have switched to lower priced clothing and 59 percent say they are waiting for sales rather than buying at full price.

Sales of "big ticket" purchases are also being delayed, with 44 percent saying that home improvements projects are not currently a priority and 41 percent waiting at least another year before buying a new car.

- Reuters