Retail & eCommerce
UK Consumers to Cut Back on Takeaways and Clothing as Cost of Living Rises
A rapid increase in cost of living is motivating 82% of UK consumers to cut back on non-essential spending, according to new research from Braze. The study, conducted at a time when the Consumer Price Index (CPI) is recording its highest rate of inflation in 25 years, finds that nearly half (47%) of these surveyed UK consumers plan to rein in non-essential expenditures by up to a third, compared to the last six months.
The purchases that surveyed consumers plan to cut back on the most during the remainder of 2022 are takeaways/food orders (61%) and clothing (47%), with spending cuts across home furnishings, electronics, alcohol, and toys also expected. According to the findings, the area that surveyed consumers seem most resistant to cutting back on is holiday bookings (27%), reflecting the easement of recent travel restrictions imposed during the pandemic.
Reflecting this increased consumer focus on finances, the data shows that 38% would value more personalized offers from retail brands to suit their budgets, and one in five would like the ability to pause promotions and offers from retailers for financial reasons.
Retail businesses are already facing a challenging landscape driven by the acceleration of hybrid shopping behaviors following the pandemic, growing customer expectations, and the privacy shift towards first-party data. The impact of ongoing cost of living increases will place greater pressure on brands to meet the needs of their customers while still providing the best user experiences possible.
James Manderson, SVP, Customer Success at Braze, comments: “This new research shows the impact of the cost of living rise on non-essential spending. This is a time for brands to re-evaluate their offering to consumers and to provide customer engagement in a sensitive, and personalized way that will build stronger brand loyalty in the long run and boost customer retention. By building a personal connection with customers and using first-party data to design meaningful and empathetic experiences, brands can ensure they are best placed to support consumers during this tough economic period. This applies equally from market leaders to small businesses, ensuring they are delivering the right message at the best time.”
The Braze survey was conducted by Censuswide (www.censuswide.com) among a UK nationally representative respondent sample of 2,000 people. The survey was conducted between March. 21-23, using an online survey. Censuswide abides by and employs members of the Market Research Society, which is based on the ESOMAR principles.