An economic downturn may be underway, but middle-class types are not prepared to give up their luxuries yet, says Jonathan Prynn. So, swap restaurant dinners for posh ready meals, designer labels for upmarket high-street brands and that Provençal holiday villa for a B&B in Morocco
THEY are already calling it the "prosecco recession". After 15 years of plenty, it seems the party's not over yet, in spite of the financial industry's direst warnings. For the oligarch and hedge-fund classes the credit crunch might as well not exist
, but the majority of people – faced with higher bills, shrinking property equity and reduced earnings – are starting to adapt their spending habits. But hair-shirted self-denial is certainly not "in" yet.
People are eating out less, but spending more on so-called "scratch cooking", using the finest raw ingredients to treat themselves at home.
Marks & Spencer is wooing back its food customers with an audacious marketing stunt offering a £10 dinner for two that is worth almost double that. The experiment has been a success, with shoppers making the most of the chance to eat roasted trout with crab, washed down with frizzante chardonnay rosé for a tenner.
The fizz might have gone out of the Gordon Brown economy but we are not yet ready to give up the good life. We just want to pay a little less for it – is it possible to have a Champagne lifestyle on a prosecco budget? Let's see how it works…
FOOD"Economical treats" is the buzz phrase, seen in the popularity of the M&S £10 meal-for-two offer. And Waitrose's managing director, Mark Price, confirms this lifestyle trend: "Consumers are treating themselves to a night in, rather than a night out. (Cooking at home with] the type of foods you might choose in a restaurant is on the up. Duck sales are up 30 per cent year-on-year, venison 27 per cent and dry-aged beef 118 per cent."
Restaurants are seeing customers cut down on visits and spend less. At top city restaurants across Britain, for example, there has been an increase in demand during the breakfast and teatime sittings – both are cheaper options than lunch or dinner.
FASHION RATHER than heading to Primark for low-cost fashion, credit-crunched fashionistas are spending in the more upmarket high-street stores. For those used to designer labels, retailers such as Jaeger (which ended this financial year up 16 per cent on the previous period), Reiss and Karen Millen are able to offer the customer value for money at lower prices, yet still with thoughtful design and of a high quality.
Ted Baker, which caters for discerning young men and women in fashion's mid-range market, has reported an increase of 15 per cent on sales in the spring months. Suffering middle-market fashion retailers such Next and M&S should take note – it seems it is quality, not quantity, that will keep the customers in such turbulent economic times.
TRAVEL THE Maldives, Tunisia, Morocco, the Caribbean and North America are in, while the eurozone is less popular now that the euro is so strong against the pound. That's the word from travel agents and tour operators, who add that bookings for the summer have been largely unaffected by worries over impending financial doom.
"Holidays are viewed as a necessity, not a luxury. They are one of the last things people will cut out," says Sean Tipton from the Association of British Travel Agents. "If anything, gloom at home has made people more determined than ever to escape abroad."
But travel industry commentators also predict that the boom-time habit of taking four or five short breaks a year will be cut back to just two or three.
HOME DESIGNER paint colours, solid wood flooring, colourful cushions and traditional sofas are what the careful homeowner is spending money on now, despite the downturn. Instead of ripping out whole bathrooms, money is being invested in new tiles and accessories – John Lewis' "pebbled" bath mat being their hit of the season in that department.
While there has been a big fall in orders for extravagant home makeovers, demand for high quality accessories to "freshen up" the house is as strong as ever. The one exception to the trend is fitted kitchens, sales of which are up 8 per cent, in keeping with the trend towards "restaurant quality" cooking at home. In technology, people still demand "must-have" gadgets such as iPods and flat-screen TVs.
TRANSPORT WITH petrol at around 120p a litre, the family car is one area where big savings are being made. Sales of 4x4s fell 18 per cent in May, while luxury car marques such as Porsche and Daimler are also seeing steep declines. But sales of economical models, such as the Smart car, have doubled. Sales of bicycles are also booming, says Halfords. One car accessory in demand is the roof box, as families opt for upmarket UK camping holidays.
The full article contains 841 words and appears in The Scotsman newspaper.
