ENTERTAINING AT home and shopping for basic food items are holding their own as consumers retrench in response to the economic downturn, according to a new survey.
In contrast, consumers plan to spend less on bigger investments such as household appliances and treats such as going out for a drink, according to the survey of consumer spending plans for 2009.
Spending on smaller indulgences such as newspapers and magazines, organic food or the cinema looks set to hold up this year, while up to half the consumers surveyed said they would be cutting back on bigger outlays such as holidays and short breaks or doing up the house.
Staying at home is clearly the new going out, with four out of five consumers saying that they intend to spend at least as much on entertaining at home this year as they did in 2008.
Only 20 per cent of respondents said they planned to cut back this area of spending, leading TNS mrbi – which carried out the survey – to conclude that home entertaining is the area least vulnerable to the economic downturn.
Groceries for the household are also seen as sacrosanct, with 78 per cent of respondents saying they will be maintaining spending here, and only 22 per cent planning cutbacks.
More surprisingly, perhaps, is the commitment of 72 per cent of consumers to keep up spending on their mobile phones.
Personal grooming is also seen as an essential, with 68 per cent planning to maintain spending on make-up, aftershave, perfume and other cosmetics.
For two-thirds of consumers, the daily newspaper or regular magazine continues to be a “must-have”, while the remaining one-third plans to cut back spending on these items in 2009.
Entertainment is still a priority for consumers even in tougher times, and 63 per cent said they would spend as much this year on sporting events as in 2008.
Some 58 per cent of consumers said they planned to rent DVDs with the same frequency as before, presumably to complement their home entertainment experience.
Areas of spending judged to be most vulnerable to the economic downturn were the purchase of electrical items for the house (61 per cent of people planning to cut back spending), going out for a drink (54 per cent) and family holidays or holidays of a week or longer (51 per cent).
However, almost half of respondents plan to cut back on restaurant lunches and takeaway sandwiches during the day.
Similar numbers have vowed to go to fewer concerts and to dine out less frequently in an effort to save money.
TNS mrbi interviewed a sample of more than 1,000 adults for the survey.
Interviewing was carried out by telephone, using random digit dialling and fieldwork was carried out in the second half of January.