More than half of UK consumers expect to reduce spend on non-food items over retail’s ‘golden quarter’, finds survey
October 2022 - Retail
More than half of UK consumers expect to reduce spend on non-food items over retail’s ‘golden quarter’: Research from Metapack and Retail Economics suggests that as a result of the rising cost of living, UK consumers are expecting to reduce the amount they spend at key times including Black Friday and Christmas on non-essential items.
The Holiday Shopping Trends Report surveyed eight markets (UK, US, Germany, France, Spain, Italy, Canada and Australia) finding that in the UK, consumers are expected to reduce their spending by £4.4 billion over the holiday period. Across all eight markets, it is expected that £36 billion less will be spent on non-essential items, compared to the same period last year.
More than half of the respondents polled in the UK said they expect to reduce the amount they spend on non-food items, while nine in 10 of the businesses polled said they are expecting to be impacted by rising costs in the next few months.
When asked what their greatest concerns were, almost three in 10 cited 'inflation' -- also the greatest concern recorded, while other concerns include 'uncertainty about the economy' (18%), and 'lack of savings' (12%).
As we move towards what is known as the 'golden quarter' for the retail industry, the report also highlighted four key emerging shopper types:
- The undeterred spender
- The stretched spender
- The secured but concerned spender
- The distressed spender
When asked which category they believe themselves to fall into, almost two in five Brits (38%) said they identify as a 'distressed spender'. This is summarised as a person who is at a high risk from rising living costs and most likely to cut back on their spending to try and balance the books. The same percentage (38%) said they identified as a spender who is financially strong but their attitude towards spending is influenced by their worries around cost-of-living crisis -- categorised as a 'secured but concerned' spender.
You can find out more about the Holiday Shopping Trends Report here
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