In challenging retailing times, shoppers have split into three distinct behavioural categories, explains Crossmark Asia Pacific CEO Kevin Moore...

Colorado Springs hosted the 14th Annual National Association of Retail Marketing Services (NARMS) this month, providing myself and other attendees with an opportunity to hear firsthand how the global recession is addressed in retail.

The constant theme at the conference was innovation and creating great shopper experiences. Global retail guru and author of Why We Buy, Paco Underhill, termed it 'giving good aisle'.

While attendees reported spending decline in some areas of retail activity it was, without exception, matched by reports of significant growth in other areas.

It served to remind us that through all the gloom, many manufacturers and retailers are doing well by adopting a limited number of key focus areas within their retailing mix, against a clear understanding of how shoppers are thinking.

So how are shoppers thinking?

There are three groups to consider:

· Those who have lost their job, from CEO to forklift operator (this recession doesn't discriminate by industry or hierarchy). They shop with a list and rarely deviate for impulse buys

· Those who know someone who has lost their job, and therefore this group spends with caution. In fact, with no impact on their own income and interest rates down, they have more disposable income. They just need the confidence and emotional stimulus to spend

· Those still well off, but maybe not as well off as before. But conspicuous spending is bad manners in this market, so they are less lavish in spending, perhaps adopting to delay luxury purchases, or adopting secondary buying for the first time, purchasing second hand luxury boats and cars.

All three groups are united in the belief that paying full price is just not acceptable. Shopping for a bargain is now a badge of honour.

Action points that retailers could adapt include:

· Use large clear pricing,

· Make strong displays of core stock in store

· Keep high volumes of core stock

· Educate staff on key promotions

Be aware: Neither retailers nor manufacturers are setting the price at the moment. Shoppers are deciding what's important and what they are willing to pay.