A new set of values at the shops

Jun 24 2009 Agenda, Birmingham Post

The summer sales are starting – but did the winter ones ever end? Hotelier Kathrine Ohm Thomas and luxury retailer Kevin Breese discuss the benefits of “flexible pricing” in a recession.

Shopping is one of the great British pastimes. Many people’s idea of heaven is lingering over clothes rails, alighting on a pair of must-have designer shoes or spotting a funky desk lamp.

Yet over the past few months, since the recession started to bite, a lot of people have had to rethink their retail habits. Whereas a year ago you might not have thought twice about snapping up an Armani suit; now you wouldn’t dream of buying one unless it was in a sale, and even then after some serious soul-searching. Do you really need it rather than simply want it?

We’ve both reined in our spending over the past few months. But in so doing we’ve made an unexpected discovery – that watching the pennies and being selective about what we buy is a lot more satisfying than splurging ever was. Now, when we buy something with a “50 per cent off” tag attached to it, we get double the amount of pleasure.

We’ve also made changes in what we buy. These days our eyes are more likely to be drawn to a cushion rather than the whole sofa and we’re accessorising more: a well worn dress be rejuvenated by artfully draping a scarf around the neck and a man’s suit can be given a new lease of life with a groovy new tie.

Then there’s make-up. Who needs this season’s must-have heels when you can make your eyes look bigger and brighter with a different shade of eye liner? Since the economy ground to a halt, sales of lipstick have soared and it’s not difficult to work out why: it’s well known in financial circles that when times get tough, people stop shelling out on expensive purchases and instead make do with small luxuries such as lippy.

That said, fashion snobbery is still very much alive and kicking – and the fashion designers have the answer: diffusion lines. Many people who once only bought Dolce & Gabbana now head straight for the D&G rails, while those who love Chloe opt instead for See by Chloe.

One quality outfit that will stand the test of time is seen as being more economical than purchasing several cheap separates that won’t last beyond the season.

It has just been announced that Jimmy Choo and H&M are collaborating on a collection that will include ballet pumps for as little as £30. The Choo range, expected in stores in November, will also feature a line of bags, accessories and clothes. Expect to see long queues!

So it’s not that people aren’t spending – it’s that they are being more discerning with their money. That also means they’re putting more thought into the gifts they buy – taking their time to choose presents that will give friends and family lasting pleasure rather than fleeting enjoyment.

People are also more thoughtful when it comes to eating out or going away for the weekend. The “treat” mentality is still there, but restaurant meals and overnight hotel stays need justifying in the present climate. As a result, people are on the lookout for two-for-one offers at restaurants and reduced-price hotel rooms.

They are certainly not looking in vain! Just as some shops won’t be bothering with a summer sale this year because they haven’t dismantled the winter one, so bars, restaurants and hotels have introduced “flexible pricing” to ensure bums on seats and heads on pillows. And it’s working: some top-end Birmingham hotels have notched up higher occupancy rates this year than they did last year. This is due, in part, to the state of the Euro: it’s now cheaper to spend a weekend in Birmingham – with its myriad visitor attractions – than it is to visit, say, Prague. Even leisure parks are in on the act: Alton Towers, for example, is currently offering a free return trip to visitors who turn up this month.

As a result, the recession has presented us with a win-win situation: the customer benefits from reduced prices and special offers, the retailers, restaurants and hotels maintain their customer base and the beleaguered economy keeps ticking over.

What’s more, everyone is thinking more carefully about what they spend their money on – and that doesn’t necessarily mean opting for the cheapest they can find; rather, it means seeking out value for money and buying more sustainably. In short, we can enjoy ourselves as much as we could this time last year – just in a different, and maybe more ethical, way.

* Kathrine Ohm Thomas is general manager of the Radisson SAS Hotel and Kevin Breese is manager of Harvey Nichols in Birmingham.